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Taiwan outperforming, RRR cuts in the Philippines

In contrast to the rest of the region, where growth has recently been touching post-financial crisis lows, Taiwan’s economy has rebounded strongly over the past year. GDP figures due to be published next week are likely to show the economy grew by 3.0% y/y in Q3. With inflation very weak and growth struggling, the central bank in the Philippines (BSP) cut its reserve requirement ratio again on Thursday. The cut should put downward pressure on interbank rates, which have been trading at the top of the BSP’s interest rate corridor since around the start of the year.

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