What is the role of the Bangko Sentral ng Pilipinas (BSP) in managing inflation during an economic crisis?
Answer (1)
The BSP controls inflation by adjusting interest rates and managing the money supply. During a crisis, it can lower interest rates to encourage borrowing and spending, or raise them to control rising prices. It also monitors price movements to ensure stability and prevent runaway inflation that can hurt low-income families the most.
