IRC could drive peso lower – analysts

The central bank’s cutting of its key policy rate as part of its shift to the interest rate corridor (IRC) system from June 3 could put downward pressure on the peso, but apart from that would have limited impact on Philippine markets, analysts said.

On Monday, the Bangko Sentral ng Pilipinas (BSP) announced its adoption of the IRC system starting next month, which includes a new standing overnight deposit facility (ODF) replacing the special deposit account (SDA) as the rate setting for the lower bound of the corridor.