BSP adopts new format for policy announcements

The Bangko Sentral ng Pilipinas (BSP) will start implementing a new format for communicating monetary policy decisions starting Aug. 28, as part of efforts to increase transparency.

In a statement, the BSP said it will release its statement on monetary policy on its official website and its official X account at 2:30 p.m.

This will be followed by a press briefing at 3 p.m., which will be livestreamed on the BSP’s official Facebook page.

The briefing will begin with a statement to be read by BSP Governor Eli M. Remolona, Jr. and followed by a question-and-answer session with members of the media.

“This is part of the BSP’s efforts to further strengthen transparency and public appreciation of monetary policy actions,” the central bank said.

Prior to the change, the Monetary Board’s (MB) monetary policy decision was announced by the BSP governor at a 3 p.m. briefing.

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said the new format is a “positive move toward greater market transparency and responsiveness.”

He noted that it would allow market players to react to the Monetary Board’s stance in real-time, leaving less room for uncertainty and speculation.

“This also aligns the BSP with global best practices among central banks that time their announcements to maximize market guidance while minimizing volatility,” Mr. Rivera said in a Viber message.

“It signals confidence in its policy communication and enhances its signaling power, especially in times of heightened market sensitivity,” he added.

The BSP’s new format is similar to the US Federal Reserve’s format.

The Federal Open Market Committee releases a statement at 2 p.m. Eastern Time on the final day of its two-day meeting. The Fed Chair holds a press conference around 30 minutes after the statement is released.

The MB will hold its policy review today (Aug. 28), where it is widely expected to deliver a 25-basis-point rate cut. If realized, this would bring the benchmark rate to 5% from the current 5.25%. — KKC