Inflation Risks Continue to Challenge Philippines

[FreakinDJ]

Inflation Risks Continue to Challenge Philippines, Tetangco Says

By Joel Guinto and Cecilia Yap

June 20 (Bloomberg) -- The Philippines continues to face risks from inflation and the central bank is closely monitoring inflows and liquidity levels, Governor Amando Tetangco said.

“There are still risks that can affect inflation, but right now we would like to first assess the impact of the measures we have adopted,” Tetangco told reporters in Laguna province, south of Manila, yesterday. This year’s inflation target of 3 percent to 5 percent is “still at risk,” prompting policy makers to raise banks’ reserve requirement ratio this month, he said.

On June 16, Bangko Sentral ng Pilipinas ordered lenders to set aside more money as reserves while keeping its overnight rate unchanged at 4.5 percent after raising the benchmark by a combined half a percentage point in its two previous meetings. Higher food and oil prices have prompted policy makers in Asia to increase borrowing costs and their currencies to gain to combat inflation even amid prospects of slowing global growth.

The central bank’s recent actions are “part of the normalization of monetary policy,” Tetangco said. “The question is, whether there is going to be a need for further action moving forward.”

http://sfgate.bloomberg.com/SFChronicle/Story?docId=1376-LN1OQC0D9L3501-4QDQ2L0DUVJVUOOMHO138CBV3J

A mere 4 years ago The Philippine President and all here political cronies were all patting their selves on the back saying how shrewd they were when they aligned their selves with the Economic Policy China laid out at the Asian Economic Summit of dumping dollar reserves. I'm sure this will keep cheaply produced Chinese made goods in Philippine stores and economic independence unavailable for Philippine workers for a Very Very Long Time to come

in deed ..

[xchrom]

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