TDF volume reaches P171.97 B


By Lee C. Chipongian

The central bank’s term deposit facility (TDF) had more bids this week of P171.97 billion and exceeding the offer of P150 billion.

All three tenors were offered at P50 billion each.

The 7-day TDF received P63.72 billion bids during the auction while the 14-day attracted P47.46 billion.
The longest-dated tenor, the 28-day, received bids amounting to P60.78 billion.

The BSP has been busy adjusting and tweaking the TDF volume every week following three cycles of interest rates cut and the reduction of banks’ reserve requirement ratio by 400 basis points.

BSP Governor Benjamin E. Diokno said a prudent pause is called for as they assess the impact of adjustments in the policy rate and the RRR. For 2019, the BSP forecasts inflation of 2.4 percent.