MANILA -- The rates of all tenors of Term Deposit Facilities (TDFs) rose Wednesday following the recent hike in the Bangko Sentral ng Pilipinas’ (BSP) key rates.
Data released by the BSP Wednesday showed the rate of the seven-day facility rose by 4.1759 percent from last week’s 3.7797 percent.
However, banks submitted fewer bids amounting to PHP50.537 billion, higher than the PHP40 billion offering but lower than last week’s PHP65.440 billion. Hence, the drop in bid coverage ratio to 1.2634 from 1.6360 in last week’s auction.
The rate of the 14-day facility increased to 4.2449 percent from 3.9234 percent during the auction on August 8.
Tenders totaled PHP62.531 billion, higher than the PHP40 billion offering and the PHP33.285 billion bids last week.
Bid coverage ratio rose to 1.5633 from last week’s 0.8321.
The rate of the 28-day facility also improved to 4.2844 percent from week-ago’s 3.9620 percent.
Tenders reached PHP34.722 billion, higher than the PHP20 billion offering and the PHP11.46 billion bids last week. Bid coverage ratio thus, went up to 1.7361 from last week’s 0.5730.
For the auction on Aug. 22, the seven-day and 14-day TDF will be offered for PHP40 billion each and the longest tenor facility for PHP20 billion.
On Aug. 9, the central bank’s policy-making Monetary Board (MB) hiked the BSP’s key rates by 50 basis points, bringing the total rate increase to date to 100 basis points.
The decision was made as inflation continues to rise and expected to remain at elevated levels until 2019.
In the first seven months this year, rate of price increases averaged 4.5 percent.
Last July alone, inflation rose to 5.7 percent from month-ago’s 5.2 percent as food inflation continues to remain high. (PNA)
