Remolona Earns “A-” in First Year as BSP Governor

Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. received an “A-” grade in his first year as head of the central bank, according to Global Finance’s Central Banker Report Card for 2024. This rating is the third-highest on the scale, placing Remolona among 15 central bank chiefs worldwide who achieved the same score, including US Federal Reserve Chair Jerome Powell.

Remolona took over as BSP governor in July last year and was not evaluated for 2023 due to insufficient time in the position. The Global Finance report commended central bankers globally for their efforts in combating inflation through measures like higher interest rates, which have led to significant reductions in inflation rates.

“Central bankers have waged war against inflation over the past few years, wielding their primary weapon: higher interest rates. Now, countries around the world are witnessing the tangible results of these efforts, as inflation has dropped significantly,” said Joseph Giarruputo, founder and editorial director of Global Finance.

The Central Banker Report Card evaluates central bank leaders on a scale from “A+” to “F”, considering their performance in inflation control, economic growth targets, currency stability, and interest rate management.

Prior to his appointment as BSP governor, Remolona was a professor of finance and director of central banking at the Asia School of Business in Kuala Lumpur and served as chief representative for Asia and the Pacific at the Bank for International Settlements.

In a recent move, the Monetary Board of the BSP cut policy rates by 25 basis points, marking the first rate cut in nearly four years and the first adjustment since an off-cycle hike in October 2023. The reverse repurchase (RRP) rate was lowered to 6.2%, the overnight deposit rate was adjusted to 5.75%, and the overnight lending facility rate was set at 6.75%.

The BSP also adjusted its inflation forecast for 2024 to 3.3%, up from 3.1%, and downgraded its 2025 forecast to 2.9% from 3.1%. The adjustments were prompted by a 4.4% inflation rate in July, the highest in nine months, driven mainly by increases in housing, water, electricity, gas, and other fuel prices.

In the 2024 Central Banker Report Card, only three central bankers scored “A+”: Denmark’s Christian Kettel Thomsen, India’s Shaktikanta Das, and Switzerland’s Thomas Jordan. Seven central bankers, including those from Brazil, Chile, Mauritius, Morocco, South Africa, Sri Lanka, and Vietnam, received an “A.”