Philippine Central Bank Aims to Anchor Inflation Back to Target, Governor Says

The transcript discusses the BSP's approach to managing inflation and interest rates amidst rising consumer prices and a depreciating peso. It highlights the BSP's focus on anchoring inflation back to target levels, the challenges posed by strong economic growth, and the importance of monitoring exchange rate developments. The BSP emphasizes its policy independence and readiness to adjust policy settings to manage inflation expectations and maintain economic stability.

What is the primary goal of the BSP regarding inflation?

• To ignore inflation and focus on other economic factors

• To maintain inflation at a high level

• To increase inflation to boost the economy

• To bring inflation back to its target range

How does the BSP generally determine the exchange rate?

• Through market supply and demand conditions

• By setting a fixed rate

• By following the US Federal Reserve

• By government intervention

What is the BSP's main consideration when raising interest rates?

• To match the US Federal Reserve's rates

• To achieve domestic policy objectives

• To increase foreign investments

• To decrease the value of the peso

Why does the BSP raise interest rates according to the transcript?

• To align with global interest rates

• To manage inflation expectations

• To increase consumer spending

• To decrease the peso's value

What does the BSP assert about its policy independence?

• It lacks the ability to raise policy rates

• It follows international monetary policies

• It is heavily influenced by the government

• It exercises independence effectively