The rapid growth in Asia's economic weight means that policy incompatibilities which partly arise on this side of the Pacific have greater global significance. The traditional Asian strategy of export-driven growth assisted by a low exchange rate worked well when Asia was small.
The year 2006 also saw the BSP implementing the following enhancements in our monetary and banking policies: •  Refinements in our inflation targeting framework to align it with practices in other inflation targeting countries. •  Streamlined access to our rediscounting facilities, one of our instruments for conducting monetary policy.