BANGKO Sentral ng Pilipinas reduced the volume of the term deposit auction set on Nov. 2, 2017 to P130 billion from P140 billion due to sluggish demand for the month-long instruments. On Wednesday, the P140 billion worth of term deposits offered by Bangko Sentral was undersubscribed by P23.45 billion due mainly to weaker demand for month-long instruments. The sluggish demand compelled Bangko Sentral to trimmed the volume of the 28-day instruments to P90 billion from P100 billion in its next auction on Nov. 2, 2017 to P130 billion. Bangko Sentral adopted the interest rate corridor system in June last year so that through calibrated auctioning, the transmission of monetary policy would improve. On May 16, 2016, Bangko Sentral set the interest rates for the formal shift of its monetary operations to an interest rate corridor that started June 3.

Source: The Standard October 25, 2017 12:00 UTC