Philippine central bank expects market rates to move closer to policy rate

[MANILA] The Philippine central bank expects market rates to gradually move toward its benchmark interest rate as banks become familiar with the term deposit facility (TDF) and as auction amounts become refined, its governor said on Wednesday.

The central bank's first term deposit auction was oversubscribed which meant there was significant liquidity in the financial system, Amando Tetangco said in a mobile phone message.

Mr Tetangco said the central bank would make adjustments to the amounts of the TDF "as conditions warrant."

REUTERS