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How monetary policy affects inflation
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Understanding Monetary Policy Transmission Mechanism Monetary Policy refers to the BSP's decisions and actions geared to meet its primary objective of promoting stable prices that could support economic growth. The transmission of monetary policy refers to the process through which changes in the BSP's stance -- mainly through its policy rate -- work their way through the economy by influencing the demand for goods and services, and, ultimately, inflation. WATCH THIS to know more... | Bangko Sen
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Monetary Policy: Meaning, Types, and Tools
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The BSP keeps inflation low and stable through the conduct of monetary policy, which consists of decisions about the money supply and the cost of borrowing money to influence demand for goods and services. The BSP has monetary policy tools that are used to influence the money supply and the cost of borrowing money. The primary tool is the BSP’s policy rate, the key interest rate of the BSP, which signals its monetary policy stance. Watch to learn more about Monetary Policy and Inflation Targetin
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