Borrowing rates to remain at 4%

After two wonderful presentations on macroeconomic policy that were completely lost on me yesterday (by Professor Linda Lim of the U of M Ross School of Business and the first (of two) IEDP Economics Team), an enlightening article from Bloomberg on Bangko Sentral’s decision to keep interest rates at 4% as the country continues to benefit from stimulus measures to combat the global recession.

What the articles explains lucidly enough for me to understand is the importance of determining the appropriate time to raise borrowing costs in order to capture the intended stimulating benefits of the low rates without creating conditions that would “stir up inflation and create destabilizing asset bubbles.”

Whatever those are.