The BSP's main responsibility is to formulate and implement policy in the areas of money, banking and credit with the primary objective of preserving price stability. Price stability refers to a condition of low and stable inflation. By keeping price stable, the BSP helps ensure strong and sustainable economic growth and better living standards.

Monetary Policy

The primary objective of the BSP's monetary policy is to promote a low and stable inflation conducive to a balanced and sustainable economic growth.

Monetary Policy Report


The Monetary Policy Report (MPR) was launched in February 2022. It replaces the quarterly publication of the Inflation Report and serves as the flagship BSP publication on monetary policy. The MPR provides the public a detailed view of the BSP’s forecasts as well as guidance on the likely direction of monetary policy over the near term.

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Open Letter to the President


To ensure accountability in cases where the BSP fails to achieve inflation target, the BSP Governor issues an Open Letter to the President outlining the reasons why actual inflation did not fall within the target, along with the steps that will be taken to bring inflation towards the target. Open Letters to the President have been issued on 16 January 2004, 18 January 2005, 25 January 2006, 19 January 2007, 14 January 2008, 26 January 2009, 28 January 2016, 27 January 2017, 25 January 2019, 18 January 2022, 24 January 2023, and 23 January 2024

The BSP was able to achieve its inflation target from 2009 to 2014, 2017, 2019, and 2020. For this reason, no Open Letters were issued for this period.

Monetary Operations

Monetary operations refer to the implementation of monetary policy. To ensure that the monetary policy decision is transmitted to the financial market and the economy in general, the BSP uses its suite of monetary instruments to influence the underlying demand and supply conditions for central bank money. Read more

Monetary Operations under the Interest Rate Corridor Framework