The US Federal Reserve’s decision to keep interest rates unchanged affirms the view that central banks should take both domestic and external conditions under consideration when reviewing policy, the Bangko Sentral ng Pilipinas (BSP) chief said on Thursday.
“The Fed’s wait and see tone reflects changing global dynamics,” central bank Governor Amando Tetangco Jr. told reporters.
With this, he said Philippine monetary authorities would continue to keep a close watch on developments, including market perceptions of risk across jurisdictions.
“That said, we will not go against market fundamentals but will check only for excesses in market volatilities,” Tetangco said.
The central bank noted that global markets seemed to have priced in the Fed action, with domestic financial markets appreciating the Fed pause.
The Philippine Stock Exchange index rose by 0.86 percent or 56.16 points to close at 6,563.38, while the peso gained 8 centavos to a one-week high of P47.73 against the dollar.