Remolona named among top central bank chiefs

MANILA, Philippines — Global Finance magazine has recognized Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. as one of the world’s top performing central bank chiefs for the decisions he made in fighting inflation.

In a statement, the BSP said Remolona received an “A-” rating in Global Finance magazine’s 2024 Central Banker Report Cards. The BSP chief just completed his first year in office on July 3.

Global Finance revealed only the names of central bank leaders who earned “A” ratings this month, ranging from A+ to A to A-.

The complete 2024 Central Banker Report Cards will be featured in the October edition of Global Finance, which will be available in print, digital and online.

“Central bankers have waged war against inflation over the past few years, wielding their primary weapon: higher interest rates,” Joseph Giarraputo, founder and editorial director of Global Finance, said.

“Now, countries around the world are witnessing the tangible results of these efforts, as inflation has dropped significantly,” he said.

Under Remolona’s leadership, the Monetary Board decided to take an off-cycle action to hike policy rates by 25 basis points to a 17-year high of 6.5 percent in October 2023. This brought the total rate hikes to 450 basis points. The BSP kept its tight policy rate unchanged for six straight meetings since November 2023.

At its August meeting, the Monetary Board cut borrowing costs for the first time in nearly four years. It brought down the key rate by 25 basis points to 6.25 percent as inflation stabilized.

Giarraputo said that the Central Banker Report Cards recognized monetary leaders whose strategies have excelled through creativity, originality and tenacity.

There are 35 countries in total that earned “A” ratings from Global Finance. Three central bank leaders from Denmark, India and Switzerland received “A+” ratings, while “A” ratings were awarded to seven leaders from Brazil, Chile, Mauritius, Morocco, South Africa, Sri Lanka and Vietnam.

Meanwhile, 15 leaders from Cambodia, Canada, Costa Rica, the Dominican Republic, the European Union, Guatemala, Indonesia, Jamaica, Jordan, Mongolia, Norway, Peru, the Philippines, Sweden and the US received “A-” ratings.

Since 1994, Global Finance has annually released the Central Banker Report Cards. This evaluates the central bank governors of nearly 100 significant countries, territories and districts.

Grades are based on an “A+” to “F” scale for success in areas such as inflation control, economic growth goals, currency stability and interest rate management. An “A” rating represents an excellent performance, while “F” stands for outright failure.

Editors of Global Finance magazine, with insights from financial experts, assess central bankers based on both objective and subjective factors.

These include the effectiveness of monetary policy, oversight of the financial system, asset purchase initiatives, forecasting accuracy, transparency, political independence and their success in achieving national mandates.