The Monetary Board on 19 May 2022 decided to raise the interest rates on Bangko Sentral ng Pilipinas’ (BSP): (1) overnight reverse repurchase facility by 25 basis points to 2.25 percent; and (2) overnight deposit and lending facilities to 1.75 percent and 2.75 percent, respectively.
Accordingly, the rediscount rate for loans under the Peso Rediscount Facility has been set at 2.75 percent, regardless of loan maturity (i.e., 1 to 180 days) effective 23 May 2022. This is in line with the temporary reduction of the term spread on Peso rediscounting loans relative to BSP’s overnight lending rate to zero, until 30 June 2022.
Meanwhile, the applicable BSP rediscount rates for loans under the Exporters’ Dollar and Yen Rediscount Facility for the month of May 2022 remains at 3.33486 percent for United States Dollar and 1.98246 percent for Japanese Yen, regardless of loan maturity (i.e., 1 to 360 days).
