Philippines confident over cooling property measures

The Phillipine central bank is confident that its cooling measures will successfully reduce risk in the country's property sector, which has seen property prices soar in recent months.

Land values have recently surpassed 1997 peaks in seven Philippine cities, according to Colliers International UK, but Central Bank of the Philippines Governor Amando Tetangco said that the steps taken by the bank, including stress tests, expanded definition of lender investments and a new credit-risk management structure, have given lenders "clear enough guidance to help them better appreciate the risks of their lending activities".

The benchmark interest rate has been increased twice so far this year, to 4 per cent from 3.5 per cent, reports the South China Morning Post.