(PNA File Photo)
MANILA – The average rate of the Bangko Sentral ng Pilipinas' (BSP) 28-day securities rose again on Friday but demand remained strong.
Data released by the central bank showed that the average rate of the securities inched up to 5.4328 percent from 5.2174 percent during the auction on October 28.
The BSP kept the offer volume at PHP100 billion, which was fully awarded. Total tenders reached PHP139.075 billion.
BSP Deputy Governor Francisco Dakila Jr., in a statement, said yields accepted in this week's 28-day securities auction "shifted higher but narrowed to a range of 5.2150 to 5.5500 percent."
"The results of the BSP bill auction show market participants’ continued expectations of further monetary tightening. Looking ahead, the BSP’s monetary operations will remain guided by its assessment of the latest liquidity conditions and market developments," he added.
The expected hikes in the central bank’s key rates are driven by the sustained acceleration of the domestic inflation rate.
In October, the rate of price increases posted a faster rate of 7.7 percent on an annual basis from the previous month's 6.9 percent due to the acceleration of food prices, among others.
The latest inflation print is the highest since December 2008.
Monetary authorities expect risks to inflation to remain on the upside until 2023. (PNA)
