The Monetary Board (MB), in its meeting dated 25 June 2020, decided to cut the interest rate on BSP’s overnight reverse repurchase facility by 50 basis points to 2.25 percent, while the interest rates on BSP’s overnight deposit and lending facilities were reduced to 1.75 percent and 2.75 percent, respectively.
As a result, 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
26 June 2020. Such considers MB’s approval on 14 May 2020 on the temporary reduction of the term spread on Peso rediscounting loans relative to BSP’s overnight lending rate to zero, until 17 July 2020, subject to changes as may be approved by the MB.
Meanwhile, the applicable BSP rediscount rates for loans under the Exporters’ Dollar and Yen Rediscount Facility (EDYRF) for the month of June 2020, which is based on the 90-day London Inter-Bank Offered Rate plus a spread depending on the term of the loan, remain as follows:
|Loan Maturity||Rate (%)|
|United States Dollar||Japanese Yen|
Source: Bangko Sentral ng Pilipinas (BSP)