|
THE Bangko Sentral ng Pilipinas (BSP)
expects benchmark interest rates to gradually correct as the economy
expands and credit demand rises.
The 91-day
Treasury bill rate, which banks use in pricing their loans, inched
up to 2.935 percent last Monday, after dipping to a record low of
2.885 percent during the February 19 auction of the short-term
government debt papers.
At these
levels, the benchmark rate is lower than the February inflation rate
of 2.6 percent, way below the 4-percent to 5-percent target for this
year.
“Negative
real interest rates are something that can’t be sustained. As the
economy continues to grow and credit demand picks up, there’ll be
some correction,” BSP Gov. Amando M. Tetangco Jr. said during the
Chamber of Thrift Banks convention on Friday.
“Let’s see
how the market responds. It’s got to be gradual. If the economy
continues to expand, it will generate loan demand then we see
liquidity moving more,” Tetangco told reporters.
The
Development and Budget Coordinating Committee (DBCC) expects the
yield on the three-month T-bill to range from 4 percent to 5 percent
this year, with the assumed deceleration of inflation and ample
liquidity in the system driven by strong overseas Filipino worker
remittances and foreign direct investments.
The
interagency body also sees economic growth to come in between 6.1
percent and 6.7 percent this year from 5.4 percent last year.
With the
February inflation rate declining, Tetangco said average price
increases could stay below the BSP’s target.
“We don’t
see adverse shocks,” he added.
For its part,
the DBCC expects inflation to reach 3.3 percent to 3.8 percent this
year due to declining oil prices and a strong peso.
 --Maricel
E. Burgonio
|
