Moody’s: Sudden Stop of Inflows Won’t Hurt PH
The Philippines is strong enough to withstand even a “sudden stop” in foreign portfolio investments that may result from the US Federal Reserve’s decision to reduce the monetary stimulus for the world’s largest economy. Moody’s Investor Service said in a report this week that the economic activity of most Asian countries could slow down as the US Fed’s “taper” decision would lead to higher interest rates which, in turn, could make funding more expensive for companies and households.
Source: Philippine Daily Inquirer