<p><strong>GLOBAL: </strong>The US Federal Reserve (Fed) kept its policy rate steady at the 3.50% to 3.75% range at its July meeting, emphasizing that inflation is still a concern.&nbsp;</p>

<p><strong>Market impact: </strong>The S&amp;P 500 declined as Treasury yields moved higher due to the Fed’s hawkish policy rate hold.&nbsp;</p>

<p>While Metrobank expects the Fed to keep rates unchanged in the medium term as it balances its dual mandate, markets are <strong>pricing in at least one rate hike for the rest of the year, </strong>as three policymakers dissented in favor of a rate hike.&nbsp;</p>

<p><strong>LOCAL:</strong> Finance Secretary Frederick Go said that raising the income tax exemption threshold to PHP 350,000 would cut revenues by PHP 60 billion annually, while exempting small businesses from the minimum corporate income tax would cost PHP 6 billion.&nbsp;</p>

<p><strong>Market impact: </strong>The PSEi advanced as BSP monetary policy signals buoyed market optimism, while the peso strengthened to a one-month high.&nbsp;</p>

<p><strong>Secretary Go said the government could impose additional excise taxes to offset revenue losses, </strong>though specific measures have not been disclosed.&nbsp;</p>