The Philippines has tapped Eli Remolona, a member of the central bank’s policymaking board, to head the monetary authority as it strives to curb price pressures while helping shield economic growth.
Remolona will succeed Felipe Medalla whose term ends July 2, according to a statement on Friday from President Ferdinand Marcos Jr.’s communications office.
The incoming governor of the Bangko Sentral ng Pilipinas will preside over a challenging period of above-target inflation and borrowing costs at a 16-year high, threatening to slow one of the region’s fastest-growing economies.
Remolona, who worked at the Bank for International Settlements for almost two decades and at the Federal Reserve Bank of New York for 14 years, takes charge at a time when the BSP is seeking to return inflation to its 2%-4% target.
As professor of finance and director of Central Banking at the Asia School of Business in Malaysia, he ran a masters course for young policymakers aimed at refining their understanding of the flow of goods and their influence on consumer prices. He’s no stranger to price pressures caused by supply disruptions.
Remolona “would infuse a more international perspective on central banking and will give comfort to markets that policy will remain stable,” said Michael Ricafort, chief economist at Rizal Commercial Banking Corp. in Manila. “His biggest focus should be to ensure that the slowdown in inflation will be maintained and a stable peso.”
Prior to joining the Philippine central bank’s monetary panel in August 2022, he served as independent director at the Bank of the Philippine Islands. Remolona finished a doctorate in economics with distinction from Stanford University.
Finance Secretary Benjamin Diokno, a former central bank governor himself said he expects continuity at BSP under Remolona. “Monetary policy is his life,” Diokno told reporters.
Marcos made the decision to appoint Remolona “after extensive consultations” with the finance department, private banks, financial institutions and other government agencies, his communications office said.
The announcement comes hours after Medalla said the central bank will probably keep its benchmark interest rate steady for the rest of the year.
Medalla, a longtime economics professor, took the helm as governor a year ago to continue Diokno’s remaining term, and led one of the most aggressive tightening campaigns in the region.
--With assistance from Andreo Calonzo, Karl Lester M. Yap and Ditas Lopez.
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Author: Cecilia Yap and Manolo Serapio Jr.