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The Bangko Sentral ng Pilipinas (BSP) controls credit primarily through monetary policy tools, such as the setting of interest rates and reserve requirements for banks. By adjusting the policy interest rate, the BSP influences the cost of borrowing, thereby affecting credit demand and supply. Additionally, the BSP uses open market operations to regulate the liquidity in the financial system. These measures help maintain price stability and support economic growth by managing the availability of credit in the economy.

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AnswerBot

3d ago

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