A further increase in Philippine interest rates can’t be ruled out amid faster inflation and demands for higher wages, the island nation’s central bank chief told a group of financial market participants yesterday.
Philippine government bonds rose, with seven-year debt completing its best week in three months, on speculation the central bank will cut borrowing costs to curb gains in the nation’s currency.
The Philippine central bank is reviewing property loans data to determine whether cooling measures are needed to avert a bubble, Deputy Governor Nestor Espenilla said in an interview.
Remittances sent home by Philippine citizens abroad dilute the effectiveness of the benchmark interest rate, even as they bolster consumption and growth, a study by Bangko Sentral ng Pilipinas said.
"Global economic conditions are expected to stay subdued as fiscal and banking sector headwinds in advanced economies affect global output growth and as market confidence remains fragile."
- Bangko Sentral on Mar 01, 2012