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Philippine central bank to move to interest rate corridor system on June 3

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The Philippine central bank (pictured) will make the transition to an interest rate corridor (IRC) system starting on June 3, Deputy Governor Diwa Guinigundo said on Monday.

[MANILA] The Philippine central bank will make the transition to an interest rate corridor (IRC) system starting on June 3, Deputy Governor Diwa Guinigundo said on Monday.

The IRC, Mr Guinigundo said, is aimed at "steering market rates close to BSP policy rates." "We are making transmission of monetary policy more effective," Mr Guinigundo told a media briefing.

On Thursday, the central bank, expecting economic growth to remain strong after the country's leadership change, kept its benchmark interest rate steady at 4.0 per cent, where it has been since September 2014.

REUTERS