BSP rediscount rates effective April 17 2020

In its meeting last April 16, 2020, the Monetary Board (MB) decided among others to reduce policy rates by 50 basis points to 2.75% and interest rate on overnight lending facility to 3.25%. 

Earlier, on March 19, the MB approved the temporary reduction of the term spread on Peso rediscounting loans relative to the overnight lending rate to zero, until May 19, 2020.   

Thus, the applicable rediscount rate for loans under the Peso Rediscount Facility has been set at 3.25%, regardless of loan maturity (i.e., 1 to 180 days).  The Peso rediscount rate shall be effective on 17 April 2020 subject to changes as may be approved by the MB.

Meanwhile, the applicable BSP rediscount rates for loans under the Exporters’ Dollar and Yen Rediscount Facility (EDYRF) for April 2020, remain as follows:

The EDYRF rates are based on the 90-day London Inter-Bank Offered Rate plus a spread depending on the term of the loan.