Economics
Philippine Central Bank Governor Faces His First Major Test
- Economists see central bank holding rate at 3% on Thursday
- Inflation quickened to 4% in January, exceeding all estimates
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Philippine central bank Governor Nestor Espenilla faces his first major test on Thursday: striking a balance between curbing inflation and calming financial markets.
Inflation is at the highest in more than three years, the currency is under pressure and financial markets are experiencing wild moves this week. Espenilla has to decide whether now is the right time to tighten monetary policy for the first time since 2014 to prevent one of Asia’s fastest-growing economies from overheating.