How Philippines Is Refining Its Tools to Better Fight Inflation

After consumer prices in the Philippines soared at the fastest pace in more than a decade in January, the country’s central bank pursued more changes in the way it manages money supply to more effectively fight inflation and help spur economic activity. Here’s what’s been done:

The Bangko Sentral ng Pilipinas this week will introduce more changes in its monetary operations after expanding in June the list of shorter securities that it’s issuing and the following month began accepting all bids for its overnight reverse repurchase facility, one of its main policy tools. Governor Eli Remolona, who took office on July 3, has said the BSP has been working to establish a market-determined interbank overnight rate. The initiatives are aimed at sharpening its monetary tools and boosting its ability to guide short-term interest rates, which in turn influence longer-term rates and economic activity.