(Adds results of TDF auction)
MANILA, Sept 21 The Philippine central bank
raised the amount of term deposits it will offer at its weekly
auction to 110 billion pesos ($2.31 billion) starting October 5,
it said on Wednesday.
The central bank said in a notice it will offer 10 billion
pesos worth of 7-day term deposits and 100 billion pesos worth
of 28-day term deposits.
It has been gradually increasing the volume of term deposits
since the facility became operational in June to mop up excess
liquidity in the financial system and pull short-term rates
closer to the policy rate.
On Wednesday, the central bank said it awarded 10 billion
pesos worth of 7-day term deposits at 2.5 percent, matching the
interest rate corridor's floor rate. It also awarded 80 billion
pesos worth of 28-day term deposits at 2.528 percent.
Total amount tendered was 183.65 billion pesos, or 34.93
billion pesos for the 7-day and 148.72 billion pesos for the
28-day term deposits.
A term deposit facility is a tool for mopping liquidity, to
help control the interest rate corridor system that the central
bank began to implement in June to make the transmission of
monetary policy faster and more effective.
The central bank is expected to keep its benchmark interest
rate steady at 3.0 percent on Thursday but may turn hawkish next
year if inflation picks up and the Federal Reserve tightens
policy, a Reuters poll showed.
($1 = 47.7000 Philippine pesos)
(Reporting by Karen Lema; Editing by Simon Cameron-Moore)