Price Stability - Inflation Targeting


The BSP extends discounts, loans and advances to banking institutions in order to influence the volume of credit in the financial system. The rediscounting facility allows a financial institution to borrow money from the BSP using promissory notes and other loan papers of its borrowers as collateral.

The rediscounting facility has two categories namely, Peso Rediscount Facility and Exporters Dollar and Yen Rediscount Facility (EDYRF). The Peso Rediscount Facility interest rates are based on the latest available BSP overnight lending rate plus the applicable term premia per Circular No. 964 dated 27 June 2017. The EDYRF interest rates are based on the 90-day London Inter-Bank Offered Rate for the last working day of the immediately preceding month plus 200 basis points plus the applicable term premia for loan maturities exceeding 90 days pursuant to Circular No. 807 dated 15 August 2013.​

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Created:6/17/2020 3:21 PM   by:  Pambid Frederick D.
Modified:10/7/2020 4:02 PM   by:  Pambid Frederick D.