The central bank’s first reduction to 19 percent from 20 percent last March 2 has injected P90 billion in additional liquidity into the financial system. “In this case around the time when the reserves are released on June 1, we will probably increase our volume, net of what we see is the requirement at the moment of the financial system. The TDF is a key liquidity absorption facility introduced by the BSP after shifting to the interest rate corridor (IRC) framework in June 2016. The BSP has slightly lowered the volume to P110 billion today from last week’s P120 billion. It reduced the size of the 28-day term deposits to be auctioned today to P20 billion instead of P30 billion, but retained the seven-day at P50 billion and 14-day at P40 billion.

Source: Philippine Star May 29, 2018 15:43 UTC