The Philippines had a long period of varying objectives and (mostly indirect) instruments, but undertook loose inflation targeting from 2002 and more effective inflation targeting from 2009.
| Years | Targets and attainment | Classification |
| 1974-2001 | exchange rate de jure floating but de facto managed (partly by Bankers’ Association) versus USD, with concern for competitiveness and inflation, varying flexibility (including cleanish float from 1985, brief fixity 1996-7 and then cleanish float); monetary policy operated in early years (sometimes in form of base money targets) mainly through sales and purchases of central bank paper, central bank rediscounting, reserve requirements and forex swaps, but repos, reverse repos and interest rates gradually become more important (with ceilings on bank interest rates abolished); monetary financing of government varies but sometimes large; recurring short-lived spikes in inflation, often oil-price-related; monetary policy objectives typically include growth and internal and external stability, but inflation control gradually becomes more important; monetary policy periodically derailed by political, natural or external events, including severe financial problems in 1981, 1983, 1989-90; following large losses accumulated from quasi-fiscal operations, central bank restructured 1993 with some independence which is later increased | loosely structured discretion LSD |
| 2002-08 | four out of seven narrow (1%) band inflation targets missed, erratic convergence in targets and in outturns | loose inflation targeting LIT |
| 2009-23 | all targets (2% band) attained, except for undershoot late 2015 when long-term expectations remained close to centre of band, overshoot second half of 2018 when expectations exceeded band only briefly, and overshoot mid-2022 to late 2023 related to Ukraine war, when short-term inflation expectations rise sharply but longer-term expectations barely rise above the target range; interest rate corridor from 2016 with later improvements in operation; large effect of but also firm response to Covid-19; global inflation rise 2022-23 | full inflation targeting FIT |
Selected IMF references: RED 1978 p13; RED 1980 pp23-6, 29-32; SR 1980 p3; RED 1982 pp37-9; SR 1986 pp3-6; RED 1988 pp37-9; RED 1992 pp7-8; RED 1994 pp10-14; SR 1994 pp5-6; RED 1995 pp25-8, 35; SR 1995 pp7-9, 22-3, 26-7; RED 1996 pp28-30; SR 1996 pp12, 20-21; SISA 1998 ch 1; SR 1998 p14; SI 1999 ch IV; SI2001 ch II; SR 2001 pp22-3; SR 2015 pp10-11; SR 2016 pp17-19; SR 2018 p21; SR 2020 pp10-11, 20; SR 2021 pp4-6, 28; SR 2022 pp6-7, 8-9, 29; SR 2023 pp5-6, 12-14.
Additional reference: Houben (1997); Bangko Sentral ng Pilipinas, Monetary Policy Report November 2023 p24, February 2024 p18.
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Monetary Policy Frameworks 