BSP: Prolonged, sharp liquidity growth could stoke inflation

The Bangko Sentral ng Pilipinas said it can't allow money supply to keep growing at a fast pace because that could fuel inflation and even asset bubbles. In its second quarter inflation report released last week, the BSP said "Strong liquidity growth could fuel inflationary pressures... Large capital inflows warrant close monitoring as these could lead to a buildup in liquidity and subsequently, price pressures if absorptive capacity of the economy does not expand to match liquidity growth. ANC News Now, August 12, 2013