1. Bangko Sentral Gov. Gabriel Singson said the central bank would use all its weapons, including higher interest rates and sales of dollars, to defend the peso. 2. Bangko Sentral Gov. Gabriel Singson vowed yesterday to defend the peso using higher interest rates and additional dollar sales. 3. A rise in Argentine interest rates in recent months to defend the peso has depressed auto production and construction, and is drying up consumer and mortgage credit. 4. Colombian interest rates have also been rising, as the central bank tries to defend the peso, which is close to the top of its trading band. 5. He said the central bank may be forced to raise the trading band, otherwise it will have to spend its reserves defending the peso. 6. Interest rates, the other weapon used by the central bank to defend the peso, have already risen to the highest in at least four years. 7. Philippine banks raised lending rates they charge their most creditworthy borrowers as the central bank signaled that it is pushing interest rates higher to defend the peso. 8. Speaking in Hong Kong last week, Singson warned that the central bank could push up interest rates to defend the peso against future attacks. 9. Still, observers are beginning to wonder how much the central bank is willing to spend to defend the peso. 10. The Bangko Sentral last week boosted the overnight rate to a two-year high to defend the peso. |