THE approach to price stability in the Philippines has evolved, reflecting shifts in economic theories, policy approaches and global best practices. The central bank's role in maintaining price stability has become more sophisticated, emphasizing inflation targeting, data-driven analysis and proactive policy adjustments to manage inflation while supporting overall economic growth.
Participation in the Financial Sector Assessment Program , led by the International Monetary Fund and the World Bank, has further enhanced the BSP's focus on system-wide risks and macroprudential supervision. Compliance with the Basel Core Principles for Effective Banking Supervision is an important aspect of the FSAP.The 2007 to 2008 global financial crisis has led to further refinements in supervision, emphasizing systemic risk, stress testing and crisis management.