MANILA— The Philippines is ready for any kind of monetary policy adjustment by the US Federal Reserve, Bangko Sentral ng Pilipinas Governor Benjamin Diokno said Thursday.
"In any event, any adjustments in Fed rates, our banks are well-capitalized, and we still have a lot of policy tools in our hands for any eventuality," Diokno said in a virtual briefing.
"We are prepared for any adjustment in Fed rates,” said Diokno as quoted in a report by Reuters.
The Fed, however, is unlikely "to rock the boat" at this time, Diokno said. The US is set to hold a mid-term election next year.
"I think the Fed authorities have made it very clear, they will try to avoid raising policy rates. I tend to believe them. This is my personal view. There is an election coming next year, and I don’t think the Fed would want to rock the boat at this time," Diokno said.
The US Federal Reserve is reportedly preparing to wind down extraordinary monetary measures which helped support the US economy during the global pandemic.
Moves by the US Fed could change the direction of fund flows and affect international financial markets.
— with reports from Reuters and Warren De Guzman, ABS-CBN News