September 8, 2011

Bangho Sentral ng Pilipinas also has put policy tightening on pause.  Only a quarter of 200 basis points of ease from December 2008 to July 2009 has been reversed following hikes of 25 bps each on March 24 and May 5 of 2011 in both the key borrowing and lending rates, which are presently at 4.5% and 6.5%.  A statement after leaving those rates and reserve requirements unchanged today claimed that “a pause in the policy stance allows for careful assessment of inflation risks amid signs of sluggish global economic growth. The Monetary Board believes that the current monetary policy stance remains in line with the need to safeguard price stability and support sustained economic growth.”  The price target is 3-5%.

Copyright 2011, Larry Greenberg.  All rights reserved.  No secondary distribution permitted without express permission.



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