Fed rate hike delay, inflows to prop BOP – ING

MARKET expectations that the United States Federal Reserve will hike interest rates only toward the end of 2015 and inflows coming from remittances and the business process outsourcing (BPO) sector will support the Philippine balance of payments (BOP) position this year, ING Bank Manila said in a recent financial markets report.

“The central bank expects about $1 billion in BOP surplus. The likelihood remains high for now, especially with market expectations of a late 2015 Fed rate hike,” Joey Cuyegkeng, senior economist at ING Bank Manila, said in the report.