Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. said Thursday the likelihood of the US Fed increasing interest rates next month will be good for its trading partners, including the Philippines.
“The Fed affirmed its earlier posture that their next actions would be data dependent,” Tetangco said in a text message.
“That they appear to now be more hawkish and thus less concerned about global economic slowdown is positive for global trade, especially for its trading partners including the Philippines,” he said.
Latest reports from the US said the Fed would likely increase interest rates in June if the economic data supported that move. The Fed, however, said it would continue to look for signs the economy, employment and inflation were firming before taking further action,
Tetangco said this development further confirmed that the strength of the Philippine economy could be sustained for the moment without additional support from monetary authorities.
The peso and the local stocks fell Thursday, following the release of the Fed report.