In summary, the BSP uses three tools to cushion the economy against disruptionsinterest rate adjustment, a flexible exchange rate, and foreign exchange market participation. We use a combination of these tools in a well-calibrated manner to keep the impact of external shocks manageable.
Meanwhile, there is a fourth tool, which are non-monetary measures implemented by the National Government to help boost the supply and moderate the prices of key food commodities. The BSP continues to strongly urge the timely implementation of these government interventions to mitigate the impact of persistent supply-side pressures on inflation. Let me now move on to our second mandate, which is financial stability.