RP raises lending rates

RP raises lending rates

MANILA (AFP): The Philippine central bank yesterday raised its overnight lending rate to 26 percent from 22 percent, while maintaining the overnight borrowing rate at 20 percent, dealers said.

"The central bank raised its lending rate in anticipation of tight liquidity in the overnight market as banks start covering the higher reserve liquidity requirement of the central bank," a foreign bank trader said.

The central bank recently raised the liquidity reserve requirements of banks to four percent from two percent.