Big analysts around the world were all equally surprised at how central banks are playing their cards on their monetary policies. Before it was all about the rise and fall of their interest rates, now they have to be sensitive not just to other facets of their market (such as bonds or real estate in US), but also to its effect to reciprocal countries especially those emerging ones.
“It is no longer sufficient to publish forecasts of the policy rate as an indication of the central bank’s overall policy stance.” – Paul Donovan, UBS Global Economist
So will the Fed raise interest rates now? This week’s US news are a lil bit rocky, though it ended with a good employment data. However, we got a very strong Euro now.
Is Fed together with the ECB willing to put other markets at risk by making themselves more conducive to investments? We’ve seen a not yet stable yuan, trying to get back to its feet,but we can also see the need for US to finally raise rates.
One local indication of its effect is having a bloody PSEi while anticipating for the raise.
It is said that though FED is going to raise rates it wont be as significant as expected, but as of now, nobody can tell what is still significant or not. People are reacting irrationally to the least viable news that they perceive helpful to their portfolio.
What matters is how you can take advantage of it, as everyone does- not later, not in the future, but now.