BSP talks with banks on interest rate corridor

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) is set to start talks with bank presidents and trust officers to discuss the proposed changes in the framework for monetary operations designed to enhance the effectiveness of monetary policy next year.

BSP Governor Amando Tetangco Jr. said the central bank is scheduled to meet with president of banks operating in the Philippines on Oct. 30 to discuss the proposed interest rate corridor (IRC) in the second quarter of next year.

Tetangco said the BSP would also hold talks with trust officers of financial institutions early next month on the proposed changes.

The consultation with banks and other counterparties on the details of IRC-related reforms would ensure smooth implementation and give market participants sufficient time to prepare for the transition.

“Right now that is the schedule. We will see if we need to have more,” he added.

According to Tetangco, the series of consultations with bank presidents and trust officers would help iron out concerns about the impending implementation of the IRC.

“There will be disagreements and differences of opinions,” Tetangco said.