by: Sarah Joson
Wednesday, September 23, 2015 | Outsourcing News |
According to the Bank of the Philippine Islands (BPI), the Philippines could withstand potential challenges posed by the possible interest rate hike by the US Federal Reserve in December or January next year.
The bank’s Chief Executive Officer, Cezar Consing, said the US interest rate hike is not a threat due to the fact that the country is positioned well in the external sector, and the Bangko Sentral ng Pilipinas (BSP) has become more flexible.
Analysts anticipate the US Federal Reserve to announce the rate hike in December or January, which has been delayed several times.
The bank executive also released a statement regarding his views on the country’s own interest rates next year, saying everything will depend on what the BSP decides on since they have more flexibility than other central banks.
The central banks, and even economic managers, have more flexibility to select their spots since the local government is experiencing very low leverage ratios. However, cash inflows from remittances, business process outsourcing, and low inflation give the Philippines more flexibility compared to other countries.
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