Philippines Maps Policy Shift to Avert 1997 Risk: Southeast Asia
This article is for subscribers only.
The Philippines is stepping up its battle against surging capital inflows with a plan to shift to a multiple interest-rate policy regime, as stocks at a record and the peso near a five-year high heighten asset-bubble risks.
Bangko Sentral ng Pilipinas will probably use the rate on special deposit accounts and the overnight lending rate to supplement its benchmark as tools to guide policy, according to Australia & New Zealand Banking Group Ltd., Citigroup Inc. and Nomura Holdings Inc. All 16 economists in a Bloomberg survey predict the key borrowing rate will stay at 3.5 percent tomorrow.