Sign up | Log in



Home  >>   Daily News  >>   Philippines  News  >>   Economy  >>   UBS sees higher Philippine inflation
NEWS UPDATES Asean Affairs        8 January 2011

UBS sees higher Philippine inflation

Related Stories

January  6, 2011
Philippine 2010 inflation on target

December  28, 2010
Philippine inflation in check

December 25, 2010
 Philippines plans to remove financial

December  24, 2010
Philippine current account surplus widens

December  22, 2010
Philippines foreign reserves may drop

December 3, 2010
Foreign chambers offer Philippines road map  

The Philippines is likely to have higher inflation rate, causing interest rate increases this year, according to Union Bank of Switzerland (UBS).

In its Asian Economic Comment, UBS said Philippine inflation would hit 4.1 percent this year, higher than the Bangko Sentral ng Pilipinas' (BSP) projection of 3.6 percent.

"Starting from 3 percent in December this means 5percent inflation by end 2011. The good news is that consensus inflation expectations are already in a similar position, and that this variation would still be within the BSP's target range," UBS said.

"This means that while the BSP should respond, the central bank need not move too aggressively tighten and could probably even wait a few months before appearing 'behind the curve,'" the investment bank said.

The higher inflation forecast would result from fuel prices which increased twice in late December by 4 to 6 percent, higher toll and taxi rates over the New Year, bread and sugar price increases, and a 10 percent hike in electricity rate, UBS said."We believe that

Philippine monetary conditions are loose, but also note that neither credit nor money growth are strong. Likewise while surveyed manufacturing capacity utilization is high, we do not think capacity in the whole economy is unambiguously tight," the foreign lender said.

UBS said that the low interest regime that the country is enjoying would likely be shaken by an increase of 100 basis points, which will have a gradual effect starting in the second quarter of the year.

This increase, the bank said, would likely be in conjunction with reserve ratio increases.

"We doubt the BSP will allow itself to fall behind the curve and project policy rate increases of 100 basis points this year in 25 basis points steps possibly in conjunction with reserve ratio increases, starting in the second quarter," the foreign lender said.

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    8  January 2011 Subsribe Now !
• Indonesia assumes Asean chairmanship
Subcribe: Asean Affairs Global Magazine
• Jakarta May Have New International Airport Asean Affairs Premium
• Al Gore coming to Jakarta for seminar
• Malaysia monitoring hot money
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• UBS sees higher Philippine inflation
• Thai finance minister espouses welfare plan
• 3G delay puts off investors
• Vietnam's FDI policies may need reworking
Asean Analysis    9 January 2011 Advertise Your Brand
• WEEKLY SUMMARY Sponsor Our Events
Asean Stock Watch    6 January 2011
• ASEAN Markets will rally
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