<p><span style="font-size:inherit;"><span data-teams="true"><strong>GLOBAL: The US Federal Reserve (Fed) kept its policy rate unchanged at 3.75% to 4.00% in its October meeting, balancing its fight against inflation with its mandate to support employment.</strong></span></span></p>

<p><span style="font-size:inherit;"><span data-teams="true"><strong>Market impact:&nbsp;</strong>US stocks and Treasury yields rose while the dollar fell as markets digested the Fed's decision to keep its policy rate steady.</span></span></p>

<p><span style="font-size:inherit;"><span data-teams="true">Monetary policy tightening remains on the table for the rest of the year due to persistent inflation above the Fed's 2% target.</span></span></p>

<p><span style="font-size:inherit;"><span data-teams="true"><strong>LOCAL: Resources of banks and nonbank financial institutions climbed by 11.15% year-on-year to PHP 38.561 trillion in August, reflecting sustained momentum of core banking operations.</strong></span></span></p>

<p><span style="font-size:inherit;"><span data-teams="true"><strong>Market impact:&nbsp;</strong>The peso rebounded on government signals to defend the currency, while the PSEi declined as currency weakness weighed on investor sentiment.&nbsp;</span></span></p>

<p><span style="font-size:inherit;"><span data-teams="true">While the financial system's asset base is expected to maintain its upward trajectory in the coming months, headwinds include tighter economic conditions.</span></span></p>