The Monetary Board (MB), in its meeting dated 16 April 2020, decided to reduce policy rates by 50 basis points to 2.75 percent and interest rate on overnight lending facility to 3.25 percent, among others. Relatedly, the MB has previously approved on 19 March 2020 the temporary reduction of the term spread on Peso rediscounting loans relative to the overnight lending rate to zero, until 19 May 2020.
As such, the applicable rediscount rate for loans under the Peso Rediscount Facility has been set at 3.25 percent, 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.
The Exporters’ Dollar and Yen Rediscount Facility (EDYRF) rates are based on the 90-day London Inter-Bank Offered Rate plus a spread depending on the term of the loan. The applicable BSP rediscount rates for loans for the month of April 2020, remain as follows: