Sign up | Log in



Home  >>   Daily News  >>   Philippines  News  >>   Economy  >>   Philippines credit conditions normalizing
NEWS UPDATES Asean Affairs        21  February 2011

Philippines credit conditions normalizing

Related Stories

February  15, 2011
Brighter growth outlook, higher inflation for Philippines

February  14, 2011
Philippine budget deficit swells in December

February 12, 2011
Philippines economic index rises

February 9, 2011
More poor Philippine families

February  7, 2011
Hike in 2011 Philippine inflation

The Bangko Sentral ng Pilipinas (BSP) said it has taken steps toward normalizing the country’s credit condition, brushing aside suggestions it was behind the curve with respect to fighting inflation. BSP Governor Amando Tetangco Jr. told reporters that the central bank has withdrawn part of the stimulus package, such as the higher rediscounting facility, which was drawn up to prevent credit from freezing in the domestic financial market.

“In our case the inflation rate has not moved up significantly unlike in other countries. During the financial crisis all countries reduced interest rates to as low as 500 basis points to provide liquidity in the banking and economic sectors. We also did that, but we reduced the rates by only 200 basis points and that spread during a period of several months, which made our interest rates to remain positive in real terms. So, we’re OK,” Tetangco said.

Some pundits said that the BSP lagged behind its Asian peers in raising interest rates, pointing to the Philippines’ vulnerability to higher inflation amid the large weight assigned to food in the local consumer price index.

But Tetangco said monetary authorities will “closely monitor upside risks to inflation and respond accordingly to keep inflation within our medium-term target.”

“The external sector is expected to remain in the pink of health amid surging capital inflows. We will continue therefore to implement appropriate macro-prudential measures to ensure that these inflows will be used to improve the country’s productive capacity . . . rather than finance asset price bubbles,” he said.

“We assess the inflation outlook given the developments during this intervening period and come up with an overall evaluation of the price situation. The inflation outlook, plus the other factors that can affect the inflation forecast. On that basis we will make a decision on the policy interest rates,” he added.

The market consensus is for the central bank to start raising interest rates by 25 basis points in the second quarter and another 25 basis points toward yearend for a total of 50 basis points increase in 2011.

The BSP set a 3 percent to 5 percent inflation target for this year and for 2012.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    21  February 2011 Subsribe Now !
• Business leaders meet in spite of conflict
Subcribe: Asean Affairs Global Magazine
• Indonesia to review new film tax Asean Affairs Premium
• Experts weigh in on Indo economic policy
• Philippine central bank calls for higher growth
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Philippines credit conditions normalizing
• Oil up in Asia as Libyan tensions escalate
• Thailand dealing with inflation
• Thai exports to China decline
Asean Analysis    21   February 2011 Advertise Your Brand
• 2050-A pivotal year? Sponsor Our Events
Asean Stock Watch    18  February 2011
• Asean Shares are going to add to gains
Global News Impacting Asia    17 November 2010
• Bank of America sees Asian inflation
• Lloyd’s increases insurance push in Malaysia
• Wells Fargo analyst on euro
• Obama’s visit to Asia

ASEAN NEWS UPDATES      Updated: 04 January 2011

• Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2020 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand