At the same time, the tiering scheme on banks’ placements with the BSP under the RP/RRP and special deposits accounts windows was restored. This measure is intended to encourage banks to seek alternatives to placing their excess funds with the BSP such as lending to the public.
Looking ahead, the BSP is fully aware that it still has to contend with the obvious danger to inflation posed by oil prices and the potential surge in liquidity growth from strong foreign exchange inflows.