2/5  BIS central bankers' speeches  With the development of auction-based instruments complementing the overnight reverse repurchase borrowing rate as the policy rate signal, the BSP has expanded its options for maintaining firm monetary control. We reiterate our strong resolve to ensure that inflation returns to target by 2019.
With the recent firm anchoring of market rates to the Interest Rate Corridor, we now have flexibility to move towards market-based monetary instruments. This is one evolutionary aspect as well. We now have the opportunity to significantly reduce the reserve requirement ratio (RRR) over the medium term. To date, we have reduced RRR by 200 bps.