Private analysts see the Philippine central bank remaining confident about the soundness of the country’s economic fundamentals enough to keep its key policy rates steady for the rest of the year despite record-low inflation in August, but they warned some external factors still pose risks to price stability.
Such risks include prolonged dry weather conditions from El Nino and their impact on food supply, the US Federal Reserve’s monetary policy outlook, China’s economic slowdown and worse-than-expected repercussions on global growth, they said.
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