Emerging Asia Economics Update
Rate hikes in the Philippines only a matter of time
The Philippines’ central bank (BSP) kept its policy rate unchanged at 4.0% today, as expected. We are sticking with our long-held view that rates need to move up this year to ensure that inflation pressures remain contained. We continue to expect a first move at the meeting in March and for rates to climb a cumulative 100bp by end-2011.
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