Inflation targeting and the use of forecasts Inflation targeting has been in operation for a decade or so in Australia, and a little longer in some other countries. The general idea, put at its most simple, is that policy seeks to keep inflation roughly in line with an announced numerical goal, over time. There is no pretence to fine tuning here.
The finalization of the principles-based taxonomy will play a critical part here, particularly in opening the door for the inflows of capital to relevant economic activities. The BSP’s Sustainable Finance Framework which was released in April 2020 encourages the offering of green and sustainable finance instruments to support such economic activities.