“We can expect more volatility in domestic markets in the near term. Even as the direct Philippine exposure to the UK is relatively small, we will watch the impact on us via contagion from moves in the US dollar,” BSP Governor Amando M Tetangco Jr said in a text message.

“Medium term, we will look at developments, particularly how the rest of the EU will react to Brexit,” Tetangco added.

According to Tetangco, the BSP “is ready to provide liquidity to our market as needed.”

Still, monetary authorities “don’t see any need to change stance of monetary policy at the moment,” Tetangco said.

On Thursday, the Monetary Board kept key interest rates steady as the inflation environment “continues to be manageable,” although it brought down its inflation forecast for 2016 to 2 per cent from 2.1 per cent previously on a slower wage hike implemented in midyear.

Middle of the pack

With regard the peso, Tetangco noted that “while regional currencies are down, the peso remained in the middle of the pack.”

At the Philippine Dealing System, the peso hit an intraday high of 46.94:$1 or near the weaker 47:1:$1 level during the morning trade.

“As expected, the US dollar and Japanese yen benefited as safe haven currencies,” Tetangco said.