June 21, 2022 | 8:17 pm
Rising inflation in advanced and emerging economies has led their central banks to raise policy rates to temper economic activity. “Given the headwinds that we see right now, the primary challenge has to do with valuation in financial assets. So we would grade that as a red box in the schematic that we have, and the rising global interest rates will then change the pricing of risk and will revalue financial assets as well,” Senior Assistant Governor and FSCC Technical Secretariat Head Johnny Noe E. Ravalo said.
“We expect spillovers from the Advanced Economies to Emerging Market Economies through cost-push pressures and higher risk premiums. These are not independent shocks but are interconnected at many levels, creating complex, non-stationary and interlinked cause-and-effect relationships,” the outgoing governor, who becomes Finance Secretary next month, said.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.