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Manila central bank says ready to guard against financial excesses

Published on May 13, 2014 4:33 PM

MANILA (Reuters) - The Philippine central bank is ready to guard against excesses in the financial system such as a possible increase in investment flows after last week's credit rating upgrade from Standard & Poor's, its governor said.

S&P hiked on Thursday the Philippines' credit score to BBB, or two notches above investment grade, citing improvements in structural, administrative, institutional and governance reforms that are likely to remain beyond President Benigno Aquino's term.

It was the first time for the country to reach a debt rating of two notches above investment grade.

"Our policy will continue to be geared towards ensuring that inflows do not generate financial stability concerns," Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco told reporters in an email. "This is consistent with what we have done in the last two meetings," he added.

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