Normal cyclical downturns are often reinforced by tight monetary policies in response to an overheating economy and inflationary pressures, and the downturn can be effectively  BIS central bankers’ speeches  1  moderated by a reversal of the monetary policy stance. Unfortunately we are not in a normal cyclical downturn, and the crisis cannot be solved through monetary policy alone.
We beefed up our macroeconomic analysis and surveillance tools, introduced crucial and timely reforms such as the Interest Rate Corridor framework, and increased public engagement in our policymaking process. At the same time, BSP and the banking industry continued to pursue a broad reform agenda to strengthen their ranks in terms of capitalization, risk management, and corporate governance.