Paying interest on reserve balances enables the Fed to break the strong link between the quantity of reserves and the level of the federal funds rate and, in turn, allows the Federal Reserve to control short-term interest rates when reserves are plentiful.
At the same time, the monetary authorities have the flexibility to adjust policy, if needed, to sustain price and financial stability without sacrificing economic activity. In other words, investors can expect not only sources of value but also anchors of stability in investing in the Philippines. Thus, our country will continue to provide a conducive business environment and outstanding value to investors.