BSP policy rate

BSP policy rate — the rate the Bangko Sentral ng Pilipinas sets on overnight money for banks, steering the local credit cycle Dalio’s machine describes. When inflation runs hot the BSP hikes and every deposit, loan, and bond rate re-prices upward; when it cools the BSP cuts and the whole board slides down. Rates are cycle weather, not bank personality — compare institutions against each other today, never against their own last year.

First used in: 1.3 · The floor: cash, digital banks, deposits