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NADI, Fiji – S & P Global's decision to improve the credit rating of the Philippines is "a vote of confidence" for Manila's cautious policy and its ability to withstand shocks, an economist said Wednesday.
The debt observer raised the Philippines rating from one notch to BBB +, the third lowest rating in the investment category or three notches above the investment grade minimum rating.
"The main effect of this rating improvement is that it will be much easier now for the Philippines to get closer to the market," the ANC's chief economist told AFP. ASEAN + 3 Macroeconomic Office, Hoe Ee Khor, on the sidelines of the 52nd Annual Meeting of the Asian Development Bank here.
"This is a sign of market confidence in the resilience of the Philippines, their ability to withstand shocks and their relatively cautious approach to policy making," Khor added.
The upgrade was "well deserved" after the Bangko Sentral ng Pilipinas raised the benchmark borrowing rate by 175 basis points in 2018 to control inflation, he said. Inflation slowed for the fifth consecutive month in March.
The Philippines has "a little bit of space" to ease their rates when "the situation is good" or when inflation is firmly anchored, he said.
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