Recent work at the Bank suggests that the best outcome is achieved when macroprudential policy targets emerging imbalances in the economy, such as excessive growth in credit, leaving monetary policy free to focus on price stability. 13 Of course, these polices must take account of one another.
In this connection, we make sure that two-way communication is maintained with our various constituents. Among others, the Bangko Sentral has maintained a consultative process given that concerns of financial markets have become broader in breadth and deeper in consequence.