The Bangko Sentral ng Pilipinas may further pare a lending program for banks or consider raising the interest rate for the facility as it unwinds stimulus measures, the central bank said.

“As we indicated in the past, a prolonged exit of advanced economies, particularly the U.S., could lead to liquidity and inflation pressure,” Deputy Governor Diwa Guinigundo said. “That poses a challenge to emerging markets including the Philippines to consider a more timely exit as far as monetary policy is concerned.”

Bangko Sentral ng Pilipinas is “looking at” reducing the so-called rediscounting budget for loans to banks, Assistant Governor Cyd Amador said in an interview in Dagupan City on Wednesday. It may also review the pricing of those loans as authorities aim to “normalize” the lending window, she said.

Bangko Sentral on March 11 reduced the budget for the rediscounting facility to P40 billion from P60 billion, effective March 15, while keeping the benchmark interest rate at a record- low 4 percent.