Price Stability: What it Means Under Section 3 of Republic Act (RA) 7653, the BSP is primarily mandated to maintain price stability conducive to a balanced and sustainable growth of the economy. What does managed and stable inflation mean for the Philippines?
Price stability supports economic growth as it allows households and businesses to plan ahead and make informed consumption, investment, saving, and production decisions. Uncertainty is lowered. Managed inflation also protects the purchasing power of the poor, which is important as the poor are vulnerable without adequate assets to hedge against high inflation.