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(From Philippine Daily Inquirer)
Byline: Doris C. Dumlao
THE ASIAN Development Bank sees the need for tighter monetary policy in the Philippines and in many other countries in East Asia this year as inflation continued to rise across the region.
In its December issue of Asia Economic Monitor, the ADB said the economic outlook for the Philippines, People's Republic of China, Indonesia and certain smaller countries, including Lao People's Democratic Republic and Vietnam, appeared to require monetary tightening.
It noted that in the Philippines, with both headline and core inflation rates hovering above 7 percent or much higher than the official target of 4-5 percent, the tightening of monetary policy was needed.
The report also cited that in China, given the need to rein in investment and economic growth, the authorities implemented a series of administrative measures to control bank credit and money supply growth.
East Asia is defined as the 10 members of the Association of Southeast Asian Nations plus China and the Republic of Korea.