14 March 2002
The Monetary Board decided to reduce BSP’s key policy rates by another 25 basis points. The overnight RRP rate was lowered to 7.0 percent while the overnight RP rate was reduced to 9.25 percent effective 15 March 2002.
Correspondingly, the interest rates on overnight RRP and SDA placements with the BSP under the tiering scheme were adjusted as follows: 7.0 percent for placements of up to P5 billion, 4.0 percent for the next P5 billion and 1.0 percent for placements in excess of P10 billion.
11 April, 8 May, 6 June, 4 July, 1 August, 29 August, 26 September, 23 October, 21 November, 19 December 2002
During the monetary policy meetings held for the period April-December 2002, the Monetary Board decided to keep the overnight RRP and RP rates steady at 7.0 percent and 9.25 percent, respectively.
14 February 2002
The Monetary Board opted to lower the BSP’s policy rates further by 25 basis points each, bringing the overnight RRP rate to 7.25 percent and the overnight RP rate to 9.5 percent effective 15 February 2002.
The Monetary Board also approved an adjustment in tiering scheme for banks’ overnight RRP placements with the BSP as follows: 7.25 percent for placements of up to P5 billion, 4.25 percent for the next P5 billion and 1.25 percent for placements in excess of P10 billion. The tiering scheme also covered special deposit accounts (SDAs) and would be applied on a consolidated basis.
17 January 2002
The Monetary Board decided to reduce the overnight reverse repurchase (RRP) and repurchase (RP) rates by 25 basis points each to 7.5 percent and 9.75 percent, respectively.
Consequently, the Monetary Board also adopted a change in the tiering structure for banks’ overnight RRP placements with the BSP as follows: 7.5 percent for the first P5 billion, 4.5 percent for the next P5 billion and 1.5 percent for placements in excess of P10 billion.
The Monetary Board also approved a two-percentage point reduction to 7.0 percent of the liquidity reserve requirements on deposits and deposit substitute liabilities, common trust funds and other trust and fiduciary liabilities of commercial banks and non-banks with quasi-banking functions.
These monetary policy measures took effect on 18 January 2003. Moreover, it could be noted that this decision marks the first action of the Monetary Board under the inflation-targeting framework.
26 December 2001
The BSP announced formally the adoption of inflation targeting as framework for monetary policy beginning January 2002. The BSP also announced the Government’s annual average inflation targets of 5.0-6.0 percent for 2002 and 4.5-5.5 percent for 2003.
24 January 2000
The Monetary Board–the policymaking body of the BSP–adopted in principle the shift to inflation targeting as the BSP's framework for conducting monetary policy.