Emerging Asia Economics Update
The Philippines looks set to tighten in Q3
The Philippines’ central bank (BSP) left the reverse repo rate unchanged at 4.0% today, as expected. The economic upswing should hold strong in coming months while the policy rate looks set to remain negative in real terms for a while. External threats to the recovery will probably diminish. We forecast that rates will move up from July and will reach 5.0% by end-2010.
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