On Wednesday (US time), the US Federal Reserve announced the decision to hold off any rate hike for November. Instead, it would “wait for some further evidence of continued progress” of the US economy before raising the federal funds rate. He said this would likely put the potential December rate hike to lower levels, indicating minute adjustments in local and global rates. With this is mind, Mapa said a December rate hike may be well in order as inflation is approaching the Fed’s 2 percent objective while maintaining improvements in the labor market. “With inflation finally approaching the Fed’s objective, all the while maintaining the pace of improvement on the labor front, a December rate hike may indeed be in order.

Source: Manila Times November 03, 2016 16:39 UTC