RATE RISES. The average rates of the term deposit facility (TDF) rose on Wednesday (Sept. 14, 2022). Bangko Sentral ng Pilipinas Deputy Governor Francisco Dakila Jr. traced this to expectations for another hike in the central bank's rate during the meeting of the policy-making Monetary Board on Sept. 22. (Photo courtesy of the BSP)

MANILA – The rate of the Bangko Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) rose anew on Wednesday in line with the path of domestic interest rates.
 
Data released by the central bank showed that the average rate of the seven-day facility increased to 3.8543 percent and the 14-day facility’s to 3.9577 percent.
 
These were at 3.8357 percent for the seven-day facility and 3.8465 percent for the two-week TDF during the auction last Sept. 7.
 
The BSP hiked the offer volume for both tenors by PHP20 billion each to PHP140 billion for the shorter-dated facility and to PHP100 billion for the longer-tenor.
 
Tenders for the seven-day TDF reached PHP207.377 billion while it amounted to PHP99.594 billion for the 14-day TDF.
 
The auction committee fully awarded the shorter-dated facility and accepted all the bids for the two-week TDF.
 
In a statement, BSP Deputy Governor Francisco Dakila Jr. said accepted yields during this week’s TDF auction “shifted higher but narrowed to a range of 3.7500-3.8995 for the seven-day while these widened to a range of 3.8000-4.2500 percent for the 14-day TDF.”
 
“The results of the TDF auction show market participants’ preference for the shorter tenor ahead of the BSP’s policy meeting on 22 September and expectations of a further interest rate hike,” he said.
 
However, Dakila said “liquidity in the financial system remains ample as indicated by the total tenders” submitted by the banks.
 
“Moving ahead, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments,” he added. (PNA)