{"id":132316,"date":"2017-11-19T02:11:34","date_gmt":"2017-11-19T07:11:34","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=132316"},"modified":"2017-11-19T02:11:34","modified_gmt":"2017-11-19T07:11:34","slug":"imf-exec-cites-measures-vs-possible-overheating-of-ph-economy","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2017\/11\/19\/imf-exec-cites-measures-vs-possible-overheating-of-ph-economy\/","title":{"rendered":"IMF exec cites measures vs possible overheating of PH economy"},"content":{"rendered":"
\"FILE:<\/a>
FILE: (Pixabay photo)<\/figcaption><\/figure>\n

MANILA<\/strong> \u2014 An increase in the Bangko Sentral ng Pilipinas\u2019 (BSP) key rates is needed if, indeed, signs of overheating in the domestic economy is present.<\/p>\n

This was pointed out by IMF Resident Representative to the Philippines Yongzheng Yang, who raised the possibility of overheating if the sustained strong growth of loans continues.<\/p>\n

\u201cYou need to, if there is indeed overheating, you need to tighten monetary policy, by raising interest rates. And if the overheating is also reflected in very high credit growth, credit boom — meaning credit growth is excessive — you could also take various macroprudential policy,\u201d he said.<\/p>\n

These macroprudential measures include raising capital requirements for banks \u201cso they won’t lend out that much,\u201d he said.<\/p>\n

BSP data shows that commercial banks\u2019 outstanding loans, excluding placements in the central bank\u2019s reverse repurchase (RRP) facility, expanded by 21.1 percent last September, higher than the 20.4 percent in the previous month.<\/p>\n

Including RRP placements, bank lending rose by 20.1 percent, up from the 17.9 percent last August.<\/p>\n

Yang said the IMF forecasts a 19 percent bank lending growth for the Philippines this year and 17.4 percent next year.<\/p>\n

He explained that there is no ideal loan growth rate for any country at any time but said that if domestic loans continue to rise faster than projections then risks of overheating may occur.<\/p>\n

\u201cRight now, what we\u2019re saying is baseline credit growth will moderate. There\u2019ll be no overheating. If credit growth, as forecasts, keep going up then we have to look at whether there\u2019s a possibility of (overheating),\u201d he said.<\/p>\n

Yang added that IMF economist discount is overheating in the Philippine economy thus, the lower growth projection for next year.<\/p>\n

\u201cWe expect that the growth would start to converge to potential level. And with very strong growth over the last couple of years, there should be normalization because… on the technical part, on the bottom line is we don\u2019t see the credit growth would continue on the uptrend. It will be normalizing,\u201d he added.\u00a0(PNA)<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

MANILA \u2014 An increase in the Bangko Sentral ng Pilipinas\u2019 (BSP) key rates is needed if, indeed, signs of overheating …<\/p>\n","protected":false},"author":33,"featured_media":126589,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[20472,33957],"class_list":["post-132316","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-bangko-sentral-ng-pilipinas-bsp","tag-imf-resident-representative-to-the-philippines-yongzheng-yang","mauthors-joann-villanueva","mauthors-philippine-news-agency"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/132316","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/comments?post=132316"}],"version-history":[{"count":0,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/132316\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/126589"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=132316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=132316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=132316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}