Policy success, of course, requires that domestic saving must rise relative to domestic investment. Policy initiatives addressing individual components of domestic saving in years past appear to have had significant effects on total domestic saving, even though changes in the individual components are not wholly independent of one another.
Moving forward, the BSP will continue to fine-tune its monetary policy framework to make it more market-oriented, while staying focused on inflation control. We deployed the interest rate corridor (IRC) system in 2016. Its objective is to make market interest rates move closer to the BSP policy rate.