Bangko Sentral ng Pilipinas governor Amando Tetangco Jr. said the BSP’s interest rate for placements in special deposit accounts will be kept high until headline rates are changed.

"SDAs are priced off the policy rates so any review will be done in conjunction with policy rates review," Tetangco said.

Some market players speculate that the central bank may consider adjusting down the rates on the placements following its success in curbing rapid money supply growth.

With global risk aversion taking care of the liquidity problem, some market players say a cut in the rates is probable. That would bring back funds into the system and encourage banks to lend.

Tetangco, however, said a "host of factors" is considered for such policy action.

"We would consider a host of factors for such adjustment, including how such would impact on investors’ preferences and inflation expectations," Tetangco said.

The BSP pays as much as 6.5 percent for these short-term deposits, more than double than what is offered at the auction market.

It has encouraged placements in banks, in the process siphoning off excess liquidity that would otherwise fan inflation.

Liquidity growth slowed to 19.4 percent in June from 21 percent in May or just a month after the facility was introduced to banks.