Business is abuzz again with speculation over whether the Philippines would raise interest rates or not. For businesses, the policy rate of the central bank is an important guide in corporate planning and financial forecasting. 5) Stocks are expected to have a negative reaction to an interest rate hike as lower-risk investment such as Treasury bonds become more attractive to investors. Again on Wednesday, the index lost a further 1.87 percent to close below 8,000 points on worries over a possible interest rate hike. Reflecting market concerns, Japan’s biggest investment bank Nomura forecast a policy rate adjustment – a 25- basis point policy rate hike based on accelerating inflation.

Source: Manila Times March 21, 2018 17:15 UTC