MANILA, Philippines — The Bangko Sentral ng Pilipinas lifted anew the rediscount rates on loans extended to local banks to finance the expansion needs of businesses and households. In a statement, the BSP said it raised the rediscount rates for loans under the peso rediscount facility to 5.0625 percent from 4.5625 percent for loans with maturity of up to 90 days and to 5.1250 percent from 4.6250 percent for loans with maturity of up to 180 days. Rediscount loans reached P20.02 billion from January to August due to higher demand for corporate loans amid the massive infrastructure build up by the government. It first raised interest rates by 25 basis points for the first time in more than three years on May 10 followed by another 25 basis points on June 20, 50 basis points – the biggest in 10 years – last Aug. 9, and 50 basis points last Sept. 27. The overnight reverse repurchase rate currently stands at 4.5 percent, the overnight deposit and overnight lending rates at four percent and five percent, respectively.

Source: Philippine Star October 01, 2018 16:05 UTC