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.
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.
Full Report | Visual Summary | Archives
The Monetary Board holds monetary policy meetings eight (8) times a year, with meeting intervals of six (6) to eight (8) weeks, to deliberate, discuss, and decide on the appropriate monetary policy stance of the BSP in order to keep inflation within the target
The Advisory Commitee
Consistent with the disclosure and reporting mechanisms under the Inflation Targeting framework, the BSP publishes the highlights of the meetings of the Monetary Board on monetary policy to help the public gauge the BSP's commitment to achieve the inflation target.
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
Inflation targeting is the BSP’s way of conducting monetary policy to achieve its primary objective of price stability. The BSP adopted the inflation targeting framework in January 2002.
The Inflation Target
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
The RRP facility is the primary monetary instrument of the BSP. The Target RRP Rate signals the policy stance of the BSP. The overnight RRP facility is offered using variable-rate tenders, multiple price auction format.
Auction Schedule | O/N RRP Rate
BSP Securities are monetary instruments issued by the BSP for its monetary policy implementation and liquidity management operations to steer short-term market interest rates towards the policy rate and influence liquidity conditions in the financial system.
Auction Schedule | Auction Result | Historical Excel
The TDF is a key liquidity absorption facility, commonly used by CBs for liquidity management. Currently, three tenors— 7 days, 14 days and 28 days—are offered in weekly auction.
These standing overnight facilities (lending and deposit) are available on demand to qualified counterparties during BSP business hours in order to help them adjust their liquidity positions at the end of the day.
The two standing facilities that form the upper and lower bound of the corridor are set at ± 50 basis points (bps) around the target policy rate (the overnight RRP rate under the new IRC structure).
OLF Rate | ODF Rate
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