It commits the central bank to remain inactive, even when the inflation outlook has changed, just as Odysseus committed himself to remaining on his ship even when he heard the sirens. It is thus no surprise that central banks increasingly resorted to forward guidance as nominal policy rates began approaching the zero lower bound.
In line with our mandate, the Bangko Sentral works on providing an operating environment where stability is the hallmark of price movements and the financial system. The objective is to create conditions that are conducive to a balanced and sustainable growth of the economy. Promoting macroeconomic stability is crucial because it serves as a solid springboard for households and businesses to flourish.