MANILA, Philippines — The Philippine economy is not facing any material threat of overheating, a central bank official said Thursday, in response to a global debt watcher’s warning that the nation is still at risk of expanding at a rate that is unsustainable. However, it flagged that overheating risks “remain in place,” citing rapid credit growth and a widening current account deficit. Overheating occurs when production in a fast-growing economy is not able to keep up with rising demand, igniting sharp rise in prices. The BSP has delivered rapid-fire interest rate hikes of 1.75 percentage points since May, among the most forceful actions in Asia. According to Fitch, the economy will continue to be supported by strong domestic demand and increasing infrastructure investment.

Source: Philippine Star December 20, 2018 10:05 UTC