Inflation won’t hurt PH economy — Metrobank

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MANILA, Philippines — Metrobank has expressed confidence inflation, although likely to accelerate further, will remain manageable and will not reach levels that could stall recovery.

In its latest research note, Metrobank said various emerging economies have already implemented measures to temper inflation in their jurisdictions. These measures are led by interest-rate hikes, which some economists feared could dampen consumer demand and drag overall economic growth.

It said that despite the increase in interest rates in many emerging markets, the move by the policymakers did not lead to substantial slowdown in the growth rates of economies.

Given this backdrop, accelerated increase in consumer prices as well as efforts to curb the increase, such as interest-rate hikes, could be very well absorbed by the Philippine economy. The bank said faster inflation would remain within tolerable levels and would not cause the economy to significantly slow down.

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