Philippines Names Remolona as Apex Bank Chief

Eli Remolona, a member of the central bank’s policymaking board, has been selected to head the monetary authority in the Philippines. This decision comes as the country aims to address rising prices while safeguarding economic growth. President Ferdinand Marcos Jr.’s communications office announced on Friday that Remolona will succeed Felipe Medalla, whose term concludes on July 2.

The incoming governor of the Bangko Sentral ng Pilipinas (BSP) will face the challenge of managing inflation levels surpassing the target and borrowing costs reaching a 16-year high. These factors pose a threat to the growth of one of the region’s most rapidly expanding economies. Remolona brings extensive experience to the role, having worked at the Bank for International Settlements for nearly two decades and at the Federal Reserve Bank of New York for 14 years. His appointment is timely, as the BSP strives to bring inflation back within its desired range of 2% to 4%.

Remolona has previously taught finance and directed Central Banking at the Asia School of Business in Malaysia, where he designed a masters course aimed at enhancing policymakers’ understanding of the impact of goods flow on consumer prices. His expertise in managing price pressures resulting from supply disruptions will contribute an international perspective to central banking and offer reassurance to the markets regarding stable policy, according to Michael Ricafort, chief economist at Rizal Commercial Banking Corp. in Manila. Ricafort also emphasised the importance of his focus on maintaining a slowdown in inflation and a stable peso.

Before joining the monetary panel of the Philippine central bank in August 2022, Remolona served as an independent director at the Bank of the Philippine Islands. He holds a distinguished doctorate in economics from Stanford University. Finance Secretary Benjamin Diokno, himself a former central bank governor, expressed confidence in his ability to provide continuity at the BSP, highlighting that monetary policy is his area of expertise.

President Marcos made the decision to appoint Remolona after conducting extensive consultations with the finance department, private banks, financial institutions, and other government agencies. The announcement of his appointment closely followed Medalla’s statement that the central bank is likely to maintain its benchmark interest rate unchanged for the remainder of the year. Medalla, a long-time economics professor, assumed the role of governor a year ago to complete Diokno’s term and led a highly assertive tightening campaign in the region.