MANILA, Philippines – The Philippines remains in a sweet spot with a lot of room for investment and economic activities, the Union Bank of Switzerland (UBS) said in its latest report.
“The lack of excess suggests the Philippine economy is still in a sweet spot. Easy monetary policy settings and rich asset valuations can encourage excesses in domestic credit and investment activity, but these have yet to show up in a meaningful way,” UBS said in a report released last week following the 25-basis points reduction in key policy rates by the Bangko Sentral ng Pilipinas (BSP).
On Thursday, the BSP reduced the overnight borrowing rate to a low of 3.75 percent and the lending rate to 5.75 percent on concerns over global growth risks.
In its report, UBS raised the question as to whether it was necessary for monetary authorities to raise rates.
It said that easing monetary policy may spur credit but this has yet to be seen.
UBS also said the Philippine economy is not immune to the global external risks such as the crisis in the euro zone.
“At the same time, the Philippine economy is not immune to global headwinds. In the context of international risks to the Philippine economy and low inflation, a reasonable case for policy easing can and has been made by the BSP,” UBS said.
It said that earlier BSP monetary policy should be good for asset prices.
UBS said it expects the policy rate to be at 3.75 percent for the overnight borrowing rate and the peso at 42 to the dollar by yearend.
The inflation rate dipped to 2.8 percent in June from 2.9 percent in May, according to latest data from the National Statistics Office.
The June inflation brought year-to-date inflation at three percent, falling at the lower end of the central bank’s three to five percent target for 2012. –Iris C. Gonzales (The Philippine Star)
World Day for Safety and Health at Work
“Safety and health at work every day!”
Invoke Article 33 of the ILO constitution
against the military junta in Myanmar to carry out the 2021 ILO Commission of Inquiry recommendations against serious violations of Forced Labour and Freedom of Association protocols.
Accept National Unity Government
(NUG) of Myanmar.
Reject Military!
#WearMask #WashHands #Distancing #TakePicturesVideos
Monthly Observances:
March – Women’s Role in History Month
April – Month of Planet Earth
Weekly Observances:
Last Week of March: Protection and Gender Fair Treatment of the Girl Child Week
Last Week of April – World Immunization Week
Daily Observances:
Mar 25 – International Day of Remembrance of the Victims of Slavery and the Transallantic Slave Trade
Mar 27– Earth Hour
Apr 21 – Civil Service Day
Apr 22 – World Earth Day
Apr 28 – World Day for Safety and Health at Work
