In the process, the numbers change and show good results: inflation is tamed; Philippine banks remain robust, well-funded, and adequately capitalized; the credit-liquidity dynamics in the country are consistent with expanding economic activities; the external payments position is hefty; the exchange rate trends remain consistent with macro fundamentals; and I can continue on and on.
Thus, under the new operating procedure, all the three other rates announced by the Reserve Bank, i.e., reverse repo rate, MSF rate and the Bank Rate, are linked to the single policy repo rate. The new operating procedure was expected to improve the implementation and transmission of monetary policy for the following reasons.