The top official of the National Economic and Development Authority has thumbed down making borrowing costs more expensive as it may further slow down economic growth.
— The top official of the National Economic and Development Authority has thumbed down making borrowing costs more expensive as it may further slow down economic growth.
NEDA Secretary Arsenio Balisacan said that while the Philippine economy can still manage more interest rate hikes, it is “unnecessary.” Imposing higher interest rates forces consumers and businesses to shell out more money to pay off credit cards, and housing and car loans. This would subsequently result in lesser demand, pulling down the prices of goods and services.
“If I were in the Monetary Board, I would say no,” Balisacan said when asked if resuming the tightening cycle could arrest the nagging inflation. The official said the Bangko Sentral ng Pilipinas has been “the most aggressive” in the region following waves of rate increases, even hitting a 16-year high of 6.25%.He warned that pursuing this could hurt consumers and manufacturers as production costs would be more expensive, “depressing” demand, and the economy suffering in return due to its long-term effects.“There's really no urgency in creating another round of high interest rates," he pointed out.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
NEDA says interest rate hike 'not urgent' despite rising inflationNational Economic and Development Authority Secretary Arsenio Balisacan said he does not think that another round of interest rate hikes is the answer to rising inflation.
Read more »
PSA: Inflation rises to 6.1 Percent in SeptemberInflation accelerated for the second month in September, driven by faster increases in food prices particularly rice, according to the Philippine Statistics Authority.
Read more »
PH stocks plunge on higher inflation rate in SeptemberDefining the News
Read more »
Inflation accelerates to 6.1% in SeptemberINFLATION further accelerated in September amid a sharp increase in key food items and transport costs, the Philippine Statistics Authority (PSA) reported on Thursday.
Read more »
PH inflation stands at 6.1 percent in SeptemberTHE country’s inflation rate in September stood at 6.1 percent, almost a percentage point higher than that of August, the Philippine Statistics Authority...
Read more »