BSP transforms Inflation Report to Monetary Policy Report

Starting Feb. 18, 2022, the BSP will begin publishing its Monetary Policy Report (MPR), replacing the quarterly publication of the Inflation Report.

It will be published four times a year to correspond with the availability of major economic data releases such as the quarterly national income accounts.

The MPR will serve as the flagship BSP publication on monetary policy to provide the public a detailed view of the BSP’s forecasts as well as guidance on the likely direction of monetary policy over the next two years.

The shift to the MPR also aligns the BSP’s publication practices with those of other central banks that publish monetary policy reports following the announcement of monetary policy decisions.

The MPR will continue to convey to the public the overall thinking behind the BSP’s decisions on monetary policy. However, a greater part of the report will be devoted to the forward-looking discussions on inflation and the key macroeconomic variables that affect inflation, as well as the risks and uncertainty surrounding the BSP’s inflation forecasts.

To this end, the structure and contents of the MPR will reflect the emphasis on the BSP’s views and outlook for inflation and growth and, when necessary, provide forward guidance.

A briefing for market analysts and the press on the key highlights of the MPR will be held after the announcement of the monetary policy decision for Monetary Board policy meetings in February, May, August, and November.

The MPR will, then, be available to the public the following day.

The shift to the MPR further strengthens the BSP’s commitment towards greater transparency under the Inflation Targeting framework. The increased disclosure and communication by the BSP of its policy decisions should further help to anchor inflation expectations going forward. (PR) – bny

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