Asia-Pacific policy makers are juggling

“Given benign inflation conditions burberry outlet 2012 and a favorable inflation outlook, we have room to support domestic activity should the global economy deteriorate significantly,” Governor Amando Tetangco said in an interview in Manila today, ahead of a policy meeting later this month. “More importantly, the Bangko Sentral ng Pilipinas is prepared to employ policy tools as may be appropriate to boost domestic economic growth as long as current readings on price and financial stability will allow.” Asia-Pacific policy makers are juggling the need to guard against inflation with mounting pressure to shield their economies from Europe’s sovereign-debt woes, which have imperiled the region’s exports. Indonesia, Thailand, and Australia started cutting interest rates last year while the Philippines, Malaysia, and India have refrained from lowering borrowing costs. “In a world where exports are going be soft Burberry watches, designer burberry watch cheap outlet 2012 in the first half of the year, it makes sense for the central bank to lower interest rates to boost private investment, consumption,” said Matt Hildebrandt, a Singapore-based economist at JPMorgan Chase & Co. “Inflation looks pretty subdued at this point and a rate cut can come as early as this month.” The yield on benchmark bonds due January 2022 rose five basis points, or 0.05 percentage point, to 5.25 percent, according to 2:25 p.m. prices at Amstel Financial Services. The Philippine Stock Exchange Index rose and the peso fell, according to Tullett Prebon Plc. Bangko Sentral kept its benchmark interest rate unchanged at 4.5 percent for a fifth meeting in December after two increases earlier in 2011. It also raised the reserve requirement twice, bringing the ratio to 21 percent. Policy makers next meet to decide on borrowing costs on Jan. 19. The monetary authority may cut its benchmark policy rate or reduce banks’ reserve ratio as it forecasts inflation this year and next to average closer to the low-end of a 3 percent to 5 percent target, Tetangco cheap burberry bags said today.