In connection with the adoption by the Bangko Sentral of inflation targeting as the new framework for monetary policy, the Advisory Committee will hold its first meeting next week on Tuesday, 15 January 2002. The meeting will come up with a recommendation regarding the stance of monetary policy for the consideration of the Monetary Board, which will meet on the Thursday of the same week.
It will be recalled that, as part of the institutional framework for inflation targeting, the Monetary Board of the BSP created the Advisory Committee to strengthen further the decision-making structure in matters pertaining to monetary policy. The Committee is chaired by the Governor, with the Deputy Governors for Banking Services and Supervision, and the Heads of the Research and Treasury Departments as members.
The Advisory Committee will meet regularly once a month to deliberate, discuss and make recommendations to the Monetary Board on issues relating to the formulation and implementation of monetary policy. Although the Committee may also meet in between the regular meetings—whenever it is deemed necessary—the regular monthly schedule of meetings signals that monetary policy is primarily focused on the medium-term outlook for inflation and not on the day-to-day gyrations in financial markets.
To improve transparency regarding the conduct of monetary policy, annotated Minutes of the Board Meetings pertaining to the discussions on monetary policy will be published with a lag of six (6) weeks.
The issue of further policy rate cuts and other monetary policy measures will thus be taken up at next week’s Monetary Board meeting.