No ‘bubble’ yet in PHL asset prices – BSP chief

Philippine asset prices have not reached “bubble-like" proportions amid the US debt deadlock and the European Union-approved bail-out for Greece, Bangko Sentral ng Pilipinas (BSP) Gov. Amando Tetangco said Monday. Monetary authorities are also ready to implement measures to curb inflationary pressures from strong foreign capital inflows into emerging markets like the Philippines, Tetangco told reporters in a text message. Tetangco added that property prices are rising at a moderate pace while the peso sustains its competitiveness against the US dollar and other currencies. Latest BSP data show that net inflows of foreign portfolio investment almost quadrupled to $2.537 billion as of July 8 from $638.05 million in the same period last year. Gross inflows of foreign portfolio investments or “hot money" more than doubled to $9.56 billion from $4.519 billion, while outflows surged 81 percent to $7.025 billion from $3.881 billion, according to the BSP. Due to strong capital inflows, the Philippine Stock Exchange index rose to a record high 4,507.04 points on July 20. — PE/VS, GMA News