Further rise in bank lending seen as inflation decelerates

THE rates of the Bangko

Sentral ng Pilipinas’ (BSP) term deposit facility (TDF) moved to separate directions on Wednesday and both the seven- and 14-day facilities were undersubscribed despite lower offer volume. The average rate of the seven-day TDF went down to 6.5882 percent from the 6.5952 percent during the auction last May 3. On the other hand, the average rate of the two-week facility rose to 6.6166 percent from last week’s 6.6159 percent. The BSP lowered the offer volume for the one-week TDF to P160 billion from last week’s P190 billion. Bids only amounted to P138.846 billion, which the auction committee fully accepted. The 14-day facility was also offered for P100 billion from last week’s P140 billion. This tenor is also undersubscribed after tenders only amounted to P88.912 billion. The auction committee accepted P88.712 billion worth of bids. In a statement, BSP Deputy Governor Francisco Dakila Jr. said bids offered during this week’s TDF auction “were slightly below the BSP’s expected volume range.” Dakila said “range of yields accepted for the seven-day tenor shifted higher and narrowed to 6.5300-6.6400 percent, while that for the 14-day slightly widened to 6.49956.6700 percent.” “Eligible