Business and Economy
Markets warned of more uncertainty
Bangko Sentral ng Pilipinas (Central Bank of the Philippines). Wikipedia photo
MANILA – The Bangko Sentral ng Pilipinas yesterday warned markets to brace for more uncertainty should the US Federal Reserve decides do something to delay the normalization of the credit cycle.
This involves holding up interest rates or putting an end to its monthly asset purchases, according to a BSP official.
“Anything that will delay the normalization of the credit cycle in the US and the conclusion of the quantitative easing will force continuing uncertainty in the market,” BSP Deputy Governor Diwa C. Guinigundo said.
This week, the US Fed will finalize their decision on whether to finally end its massive board buying program or reschedule it for another time.
Analysts and market players are now on the look-out for the results of the two-day meeting which will start on Oct. 28.
Guinigundo, however, added that the delay on the expected actions of the US Fed will give BSP an ample time especially given the concerns of a slowing global activity.
“That can also provide on the other hand some space in terms of flexibility in maintaining our policy rates or our monetary policy stance at this point especially as growth has become a key issue for both emerging market and the advanced economies,” Guinigundo said.
