THE central bank on Monday adjusted downward its key policy rates as part of its operational adjustment under the Interest Rate Corridor (IRC) system, effective from June 3.
The IRC is a system for guiding short-term market rates toward the Bangko Sentral ng Pilipinas (BSP) policy interest rate, which is the overnight reverse repurchase (RRP) rate.
The BSP cut the overnight RRP rate to 3 percent from 4 percent, BSP Governor Amando Tetangco, Jr. said.
The interest rate for overnight lending, or repurchase (RP) facility, was reduced to 3.5 percent from 6 percent.
Meanwhile, the current rate for special deposit accounts, which will be replaced by overnight deposit lending, was kept at 2.5 percent. MAYVELIN U. CARABALLO