Wage Hikes to Complicate Economic Management

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Byline: FIL C. SONIL

Standard Chartered Bank projected a rough road ahead for the Macapagal Arroyo economic managers should the government gives in to 22 percent increase in daily wage to soften the impact of spiralling cost of basic commodities due to the escalating prices of oil and other petroleum products.

According to Standard Chartered Regional Economist Simon Wong, macroeconomic management would be difficult, moving ahead, particularly on the part of the Bangko Sentral ng Pilipinas (BSP) as inflation is seen to move up dramatically in the coming months.

"An eventual wage agreement that come across as being too generous will have a major negative …