Since last summer, there had been a continuous deterioration of conditions in financial markets, becoming much more acute since March of this year. For instance, we have seen significant disruption in several key sectors of our financial system, such as normally creditworthy companies having difficulty issuing commercial paper, dramatic increases in interbank lending rates, and significant concerns about money market funds "breaking the buck."
Our mandate is clear: “maintain price stability conducive to a balanced and sustainable growth of the economy and employment.” Our objective in the BSP is to protect the real purchasing power of the peso to support conditions for long-term economic growth.