Philippines announces new rate corridor
Central bank will introduce new lending and deposit facilities in June, with interest rates set either side of a lower policy rate
The Central Bank of the Philippines will introduce a new interest rate corridor on June 3, in a bid to improve the transmission of monetary policy.
Interest rates on new lending and deposit facilities will be set at 3.5% and 2.5%, respectively, set 50 basis points either side of a 3% overnight reverse repurchase rate.
The central bank will also introduce a term deposit facility, which it says will be used to "withdraw a large part of the structural liquidity deficit from the financial system".
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