It supports expansionary business activities and consumption spending, effectively becoming a truly reliable pillar of economic growth. Second, as captain, I must have an intimate understanding of the vessel and its equipment. Our primary mandate, controlling inflation is often likened to operating a big ship. Slight movements in the monetary policy rudder can cause big changes in economic course.
We must be focused, precise and deliberate in our decisions. In 2002, the BSP adopted the inflation targeting framework. Inflation targetting or IT is an exhaustive policy framework where thoughtful econometric modelling and forecasting, grounded market surveillance, and sound judgement come together.