Philippines Central Bank Not Taking Chances on Peso, Oil

Philippines Central Bank Not Taking Chances on Peso, Oil

(Bloomberg) -- The Philippine central bank is not taking any chances that a recent reprieve in the peso and oil prices will be sustained: It raised rates again on Thursday and no longer sees inflation above the 2-4 percent target next year. While this should help anchor inflation expectations, Bloomberg Economics expects the currency to remain vulnerable until inflation peaks and the current account deficit narrows.

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