•  The limited impact of capital flows on monetary aggregate growth suggests that sterilization policies have been broadly effective. •  Credit growth has not contributed to macroeconomic imbalances, as inflation has remained low. A second – and related – challenge is the need to ensure continued financial stability.
The recent global financial crisis showed that sole focus on price stability is not sufficient to attain macroeconomic stability. Policymakers need to deliver more than stable prices if they are to achieve sustained and stable growth. Price stability does not guarantee financial stability. The BSP, therefore, is attentive to pressure points that could impact on both price stability and financial stability.