The Bangko Sentral ng Pilipinas (BSP) is primarily task with promoting low inflation and a healthy financial system. To carry out its mandate, the BSP focuses on the three (3) main areas or pillars of central banking. 1. Price Stability. This entails keeping inflation low to promote economic efficiency and improve the well being of Filipinos.
2. Financial Stability. The BSP ensures banks compliance prudential rules and regulations. It ensures that banks conducts business in a safe and sound manner.
3. Efficient Payment and Settlements System. This enables people to make safe, timely and accurate settlements of financial transactions.
The Bangko Sentral ng Pilipinas (BSP), the Philippines' central bank is responsible for maintaining low and stable inflation and providing proactive leadership to ensure a strong financial system for the balance and sustainable growth of the Philippine economy. The economy is constantly evolving. It grows and responds to changes and innovations. The BSP provides a solid anchor for the economy while meeting the challenges of the times. The Bank prioritizes the stability and well-being of the economy but it is also dynamic. The work of the BSP centers on the 3 main areas or pillars. The 3 pillars of central banking are: 1. Price Stability
2. Financial Stability
3. Efficient Payments and Settlements System
Let us take a closer look at the first pillar of the central banking which is "Price Stability".
Price stability refers to the condition of low and stable inflation. By keeping inflation low, the BSP helps ensure strong and sustainable economic growth and better living standards. With price stability, prices of goods do not rise too quickly and people have a degree of certainty when deciding how to spend, save or invest their money.
Monetary policy refers to the measures or actions taken by the BSP to help keep inflation low and stable. The BSP conducts monetary policy...