Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. has been included among the world’s best central bank chiefs by Global Finance magazine for steering inflation rates downward post-pandemic.

In a statement released on Monday, the BSP said Remolona received an “A minus” rating on the magazine’s 2024 Central Banker Report Cards which also feature central bank chiefs with A and A plus ratings. The report cards will be published in print and digital formats in October.

Global Finance evaluated central bank chiefs from nearly 100 countries and territories.

War against inflation

“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 Giarraputo said.

The BSP Monetary Board under the chairmanship of Remolona further increased its policy rate for private banks by 25 basis points to 6.5 percent in October last year, pushing up the total hike to 450 basis points since May 2022.

The BSP raises its benchmark for interest rates to lower inflation by restraining demand for the consumption of goods and services.

Remolona was appointed by President Ferdinand Marcos Jr. in June 2023, several months after inflation spiked to 8.7 percent in January which was the highest since November 2008 based on data from the Philippine Statistics Authority.

Inflation rates fell to 2.8 percent in January this year. However, inflation rose again from 3.4 to 4.4 percent from February to July due to external factors, such as higher oil prices due to trade disruptions from the Russia-Ukraine war and tensions in the Middle East.

Moreover, rice prices increased due to El Niño and India’s export ban on the commodity. Last month, prices of agricultural goods rose in Metro Manila as typhoon “Carina” hit the country, affecting food transportation costs.

The latest inflation print settled within the BSP outlook of 4 to 4.8 percent.

“Global Finance magazine editors, with input from financial experts, assess central bankers based on both objective and subjective factors, including monetary policy effectiveness, supervision of the financial system, asset purchase programs, forecasting accuracy, transparency, political independence, and success in meeting national mandates,” BSP said.

The BSP Monetary Board relaxed its policy rate to 6.25 percent this month as Remolona projects an inflation downtrend to 2.9 percent next year as the government continues to implement a lower tariff on imported rice.