Remolona scores "A-" in first year as BSP governor

Bangko Sentral ng Pilipinas (BSP) governor Eli Remolona Jr. scored “A-“ in his first year as chief of the central bank, the third-highest grade on the scale, based on New York-based Global Finance’s Central Banker Report Card for 2024.

Remolona, who took over as BSP governor in July of last year, was among 15 central bank chiefs who scored A-, the same score given to US Federal Reserve chair Jerome Powell. He was not given a score for 2023 as he was not in position long enough.

“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,” Global Finance founder and editorial director Joseph Giarruputo said.

“Global Finance’s annual Central Banker Report Cards honor those bank leaders whose strategies outperformed their peers through originality, creativity, and tenacity,” he added.

Central bankers are graded on a scale of “A+” to “F”, with A representing an excellent performance and F “outright failure.” The grades take into consideration factors such as inflation control, economic growth goals, currency stability, and interest rate management.

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

The Monetary Board of the BSP earlier this month cut policy rates by 25 basis points, the first cut in nearly four years, and the first adjustment since the off-cycle hike in October 2023.

The target reverse repurchase (RRP) rate was cut to 6.2%, the overnight deposit rate was adjusted to 5.75%, and the overnight lending facility rate was set at 6.75%.

The Monetary Board hiked its risk-adjusted inflation forecast for 2024 to 3.3% from the 3.1% outlook in June, while downgrading its 2025 forecast to 2.9% from 3.1%. It also announced a 3.3% forecast for 2026.

The adjustment came after a 4.4% print in July, the fastest in nine months, and above the government’s target range of 2.0% to 4.0%, mainly due to faster increase in the prices of housing, water, electricity, gas, and other fuels.

For this year, only three scored “A+” — Denmark’s Christian Kettel Thomsen, India’s Shaktikanta Das, and Switzerland’s Thomas Jordan.

Seven scored “A” including Brazil’s Roberto Campos Neto, Chile’s Rosanna Costa, Mauritius’ Harvesh Kumar Seegolam, Morocco’s Abdellatif Jouahri, South Africa’s Lesetja Kganyago, Sri Lanka’s Nandalal Weerasinghe, and Vietnam’s Nguyen Thi Hong. —KG, GMA Integrated News