South East-Asia’s worst-performing bonds look for Christmas boost

Stock-Market

MANILA/KUALA LUMPUR, Dec 12 (Bloomberg): Philippine bonds have been the worst performers in emerging Asia this year, but there’s still time for the central bank to deliver some Christmas cheer.

While policy makers are unlikely to back up November’s unexpected interest-rate cut with another reduction when they meet next week, they may turn to a different instrument to help reinvigorate the economy: the reserve requirement ratio. The so-called RRR is currently at 12%, more than three times that of Indonesia, Thailand and Malaysia, leaving plenty of room for another move lower.