For this week, it should be noted that both the Philippines and the United States of

America have opted to increase their interest rates. In an article published by Reuters, on
September 21, 2022, the Federal Reserve took action again for the third time by raising interest
rates by 75 basis points to combat the country’s inflation. It was identified that the effect on the
stock market was off by 52.18 points, or 1.35%, at P3,803.75. On the other hand, the Philippines
has also increased its rate by 50 basis points, which is less compared to the actions taken by the
Federal Reserve. Similarly, this was also done to address the inflation rate, particularly the
increase in "core inflation'', which excludes volatile food and oil items. 

The US Dollar to Peso trading in this week was also evident with a gradual increase,
which was then recorded as the all-time low of the Philippine Peso. Yet, this is not the only thing
that is taken into consideration. The foreign performance of the economic superpower is also
magnified in order to undertake the same actions to mitigate the effects of inflation. As
mentioned in the news article by the Philippine News Agency, the decision has led to fears of an
overall stock market decline and a possible recession. This behavior is not new,  as in the
previous weeks, investors in the Philippine stock market have been in a waiting game for every
development of the Federal Reserve, particularly on their actions to control their country’s
inflation.