-- Credit-fueled growth can continue uninterrupted
-- Higher yielding Asian markets to become more attractive
-- Impact on currencies different; govt responses will vary
The ECB, at its
In addition, the interest rate on the main refinancing operation of the
"From a broader perspective, the ECB's latest easing measures are important. For one, they underline our call that global liquidity should remain highly accommodative for emerging markets and
The economist noted that flusher liquidity conditions from the ECB and the potential for some capital to flow from the Eurozone to
Higher inflation, which is one of the anticipated effects of the ECB action, typically reduces bond yields, making higher-yielding markets like
The Bangko Sentral ng Pilipinas (BSP) said that while the ECB actions are favorable to liquidity conditions, it is also important to closely monitor the recent development to prevent any financial stability pressures it may create.
"This is a clear sign of asynchronicity in the stance of monetary policies of the advanced countries. In a way, this should be favorable from a global liquidity point of view," BSP Governor
Tetangco, however, noted that the impact of the ECB action on individual economies and currencies is likely going to be different and thus, the needed policy responses may also vary.
The BSP governor stressed that
"In the meantime, we will continue to closely watch out for shifts in global investor sentiment and monitor movements in our own financial markets, and any financial stability pressures that these may bring about," he said.
The next policy meeting of the Monetary Board is scheduled for
(c)2014 The Manila Times (Manila, Philippines)
Visit The Manila Times (Manila, Philippines) at www.manilatimes.net
Distributed by MCT Information Services