2/3  BIS central bankers' speeches  On the external front, we are cognizant that ongoing policy normalization by major central banks could heighten volatility in financial markets. Some central banks of major advanced economies, including the Bank of Korea, Reserve Bank of New Zealand, and Bank of England, have already raised key interest rates.
While the shift to policy normalization of advanced economies could affect capital flows and lead to financial market volatility, this also reflects opportunities for economies like the Philippines in terms of increased trade activities. Nevertheless, the BSP remains steadfast in dealing with such spillover effects through our expanded policy toolkit.