Philippine Inflation Slows
According to Bloomberg.com The Central Bank of the Philippines is not expected to increase interest rates in the Philippines. The expected economic downturn in the US will likely lower Philippine exports. Falling commodity prices should reduce the inflationary pressures on the Philippines. Growth is expected to fall from over 7% last year to just under 4% for 2008. Additional interest rate increases would likely cut further into growth of the Philippine economy.
Spending power Increase for Expats Living in the Philippines
Hopefully for the expat living in the Philippines, the central bank here will cut and not just hold interest rates steady. This lowered inflation should help increase the spending power of the Peso which makes our dollars even more valuable. While it will have a lowering effect on the price paid for each dollar the lower rate of inflation makes the peso go further after we convert it into peso.
Tagged with: Expat Finances
Filed under: Expat Finances
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