BSP unlikely to raise interest rates 'too early' - EIU

Posted at 02/07/14 1:05 PM

MANILA, Philippines - Think tank The Economist Intelligence Unit (EIU) said it's unlikely the Bangko Sentral ng Pilipinas (BSP) will raise interest rates anytime soon despite the peso's weakness.

The EIU said the BSP will be wary of tightening policy "too early" because that would dampen investment and stall economic growth.

"Despite the upside risk, the BSP will be wary of tightening
monetary policy too early, which would stymie the country's economic growth prospects and put a break on investment," it said.

The EIU expects the peso to weaken further against the dollar this year as the US Federal Reserve continues cutting stimulus. - ANC