High interest rates in RP.

[tidus1203]

Hehehehe but the banks are smart to realize that its not in their interest to pass on the rate cuts. The banks finally woked up from the dreamland of lending unemployed people to buy homes. Finally after all those years ngayon lang nila na realize uli na lending someone money they could not afford is WRONG! Galing lang talaga ng financial engineering nung past few years kaya ngayon lang nag si tumbahan.

[uls]

kaya for me tama ang ginagawa ng mga bangko natin dito

strict ang lending

[willvill]

yes the Phils. is actually doing better than other asian countries

we're not experiencing dramatic economic slowdown like what's happening in Japan, Taiwan, China, S.Korea

our economy relies more on domestic consumption

di tulad nila they rely on the consumption of developed countries

yun nga lang our domestic consumption relies on OFW remittances

basta tuloy tuloy ang remittances, we'll be ok

Probably correct but the signs are coming out: ofw's coming home, exports like electronics slowing, lay-off of workers like in Ford Motors, call centers, banks closing...

Hindi pa nag-effect ang global recession ngayun sa atin...baka delayed reaction. I would say the real bad picture for Philip[pine economy will show this first 6 months. ( I'm not an economist though).

[Pacis]

I think some are missing the point here. i think the thread is about bakit mas mataas ang interest rates sa Pinas compared sa ibang bansa, hindi bakit mas mahirap umutang sa Pinas kaysa sa ibang bansa.

tama kayo, isa sa main reason ng recession sa US is yung walang pakundangang subprime lending, pero hindi nakaaffect na mababa ang rate ng lending nila dahil hanggang ngayon, comparitively, mababa pa rin yung lending rates. mas maingat na lang sila magpautang

anyway, i'm sure I would never understand the factors involved bakit mas mataas ang rates sa Pinas, sana lang bumaba

thanks guys for the healthy discussion especially with a forum newbie like me...heheh :D

[tidus1203]

Its normal for 3rd world countries to have higher interest rates than developed countries because 3rd world countries normally experience higher inflation than developed countries, and 3rd world currencies are less liquid, more risky and have higher tendency to defualt. The basics in finance is HIGHER RISK, HIGHER POTENTIAL RETURNS. Thus we have higher interest rates. In the Philippines 6% interest rates seems normal, but in the US that is already considered high.