New SDA rate cut possible
By Michelle V. Remo
As speculations abound that the interest rate on special deposit accounts (SDAs) would be slashed further, the Bangko Sentral ng Pilipinas said it could not rule out another rate cut.
As speculations abound that the interest rate on special deposit accounts (SDAs) would be slashed further, the Bangko Sentral ng Pilipinas said it could not rule out another rate cut.
Dispelling speculation that growing domestic liquidity could lead to asset price bubbles and overheat the economy, the Bangko Sentral ng Pilipinas is effectively pushing more money into the system by cutting the interest rate on special deposit accounts (SDAs) by another 50 basis points. In its policy rate-setting meeting Thursday, the Monetary Board of [...]
The peso dropped on the first trading day of the week amid expectations the Bangko Sentral ng Pilipinas again would cut the interest rate on special deposit accounts.
The Bangko Sentral ng Pilipinas on Thursday confirmed that a reduction in the interest rate on special deposit accounts (SDA) could be imminent because of the expected surge in the inflow of foreign “hot money” resulting from the upgrade in the country’s credit rating. BSP Governor Amando Tetangco Jr. said the assignment of an [...]
The Bangko Sentral ng Pilipinas may reduce the interest rates on special deposit accounts (SDAs) by another 100 basis points this year to curb costs and stabilize the peso as inflation is expected to remain benign, economists from JP Morgan Chase and Bank of the Philippine Islands said.
The cash circulating in the country’s financial system may continue to swell as the funds parked with the Bangko Sentral ng Pilipinas’ special deposit accounts (SDAs) inch closer to P2 trillion to mark a new historic high.
The Bangko Sentral ng Pilipinas is expected to further slash the interest rate on special deposit accounts (SDAs) to as low as 1 percent to help ease the peso’s appreciation in the wake of the unabated inflow of foreign exchange.
The Bangko Sentral ng Pilipinas may soon ban foreign funds from being invested in its overnight borrowing facility—a move seen to address risks of the country attracting even bigger volumes of speculative capital from abroad.
The Bangko Sentral ng Pilipinas on Thursday slashed the interest rate on special deposit accounts to help curb the appreciation of the peso.
An official of this large publicly listed company sold some shares in his company shortly before a subsidiary reported a major adverse development that resulted in a free fall of the share prices of affiliated companies. As such, regulatory filings suggest that the official was able to lock up gains ahead of the selldown—although it remains to be proven whether he had done so because of some advanced information not available to the investing public.
Saying it was serious about keeping foreign funds away from the special deposit accounts, the Bangko Sentral ng Pilipinas said banks caught placing money of their foreign clients in SDAs would either have their access to the deposit facility suspended or revoked.
The peso weakened on the first trading day of the week as the impact of the reduced interest rate on special deposit accounts (SDAs) further sank in to market players.
