IMF paper analyses Philippines inflation
Longer delay in tightening rates would have led to higher inflation, researchers find
Inflation in the Phillipines would have risen considerably if the country’s central bank had delayed its sharp increases in interest rates last year, according to research published by the International Monetary Fund.
In Decomposing the Inflation Dynamics in the Philippines, Si Guo, Philippe Karam and Jan Vlcek assess the likely consequences of the central bank delaying its rate increases. “The counterfactual experiment simulation results suggest that had the BSP delayed its action, the
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