AQUINO SAYS MANILA WATCHING INTEREST RATES CLOSELY President Corazon Aquino said the Philippines was closely monitoring interest rates in the wake of Monday's record drop on Wall Street and steep declines in Manila and other Asian stock markets. "We will monitor these developments closely and will continue to hope that they do not precipitate large declines in economic activity around the world," Aquino told a meeting of 13 major Philippine business groups. "The Philippines, as a trading country in the world economy, depends on the continued health and growth of both the world economy and the world trading system," she said. The Manila Stock Exchange composite index plunged 105.49 points or 11.79 pct by the midday close to 789.54, depressed by the record 508 point fall of the Dow Jones industrial average on Monday. "The Philippines, in addition, as a large borrower nation, is affected by developments in interest rate levels around the world and will carefully monitor the impact of these developments on interest rates, on gold and on commodity prices," Aquino said. "We welcome the statements from world leaders that urge calm in the present difficult situation," she added.