Philippines - Lending Rate

For the Philippines, the monetary policy rate is the overnight reverse repo rate. Daily from 1986.

The source writes:

Monetary Policy decisions are produced by Advisory Committee and the Monetary Board every six weeks. The monetary policy is “to promote price stability conducive to a balanced and sustainable growth of the economy” (Republic Act 7653). The adoption of inflation targeting framework of monetary policy in January 2002 is aimed at achieving this objective.

Inflation targeting is focused mainly on achieving a low and stable inflation, supportive of the economy’s growth objective. This approach entails the announcement of an explicit inflation target that the BSP promises to achieve over a given time period.

The Inflation Target: The government’s inflation target is defined in terms of the average year-on-year change in the consumer price index (CPI) over the calendar year. The inflation targets have been set at 3.5 percent with a tolerance interval of + 1.0 percentage point for 2009 and 4.5 percent with a tolerance interval of + 1.0 percentage point for 2010.

The BSP has a number of monetary policy instruments at its disposal to promote price stability. To increase or reduce liquidity in the financial system, the BSP uses open market operations, accepts fixed-term deposits, offers standing facilities and requires banking institutions to hold reserves on deposits and deposit substitutes.

1. Under MB Resolution No. 630, the frequency of meetings of the Advisory Committee and the Monetary Board was set at every six weeks starting July 2006. Prior to this, the Advisory Committee and the Monetary Board meetings were held every four weeks.
2. Monetary Board meetings on monetary policy are held on the Thursday after the latest Advisory Committee meeting
3. Under MB Resolution No. 630, the lag in the publication of the highlights of the Monetary Board meetings on monetary policy issues was reduced to four weeks. Prior to this, the highlights were published six weeks after the reference meeting date
4. Advisory Committee meeting scheduled on 9 March 2009 and Monetary Board meeting scheduled on 12 March 2009 will be moved one week earlier. Bank for International Settlements (BIS) bi-monthly Governors’ meeting is on 8-9 March 2009.
5. Advisory Committee meeting scheduled on 9 November 2009 and Monetary Board meeting scheduled on 12 November 2009 will be moved one week earlier. Bank for International Settlements (BIS) bi-monthly Governors’ meeting is on 8-9 November 2009; 2 November 2009 (All Soul’s Day), which falls on a Monday, is a holiday.