‘Market volatility looms’ after Fed delay – BSP

The Philippine central bank warns of some volatility in the domestic financial markets in the days ahead after the United States Federal Reserve left open its timeframe for a market-anticipated interest rate hike.

“The domestic financial markets will continue to look for signals on when the Fed would begin a lift-off. So during this time when data seems to suggest that the Fed has room to delay its action, we can expect some volatility, as those who have positioned themselves for an early Fed hike reassess their next steps, while those who have held off, may continue to proceed with caution,” Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr., said in a text message to reporters on Thursday.