MANILA, Philippines — Fitch Ratings yesterday cautioned the Philippines about overheating risks, including strong credit growth and wider current account shortfall, as it reaffirmed the country’s investment grade credit rating. “However, Fitch believes that overheating risks remain in place, highlighted by rapid credit growth and a widening current-account deficit, although the central bank’s stated intention is to remain vigilant against developments that could affect the inflation outlook,” it said. We will continue to complement the government’s development efforts through conduct of sound and proactive monetary policy and financial supervision,” Espenilla said. Espenilla said the latest inflation forecast points to within-target inflation in 2019 and 2020 following the successive monetary policy increases done by the Monetary Board this year. “Additionally, credit growth in the country is driven not only by consumption, but more importantly by investment activities which boost the economy’s productive capacity.

Source: Philippine Star December 20, 2018 16:01 UTC