MANILA, June 23 (Reuters): The Philippines appointed Eli Remolona on Friday to be the next governor of its central bank, as the southeast Asian nation battles to tame high inflation that has dented economic growth.
A member of the bank's policy-making monetary board, Remolona, 70, will take over from Felipe Medalla, who has overseen the most aggressive tightening cycle in years by the Bangko Sentral ng Pilipinas (BSP) to rein in soaring inflation.
"His appointment ushers in a new era for the central bank, with great anticipation and confidence in his ability to steer the Philippine economy toward sustained growth and stability," the office of President Ferdinand Marcos Jr said in a statement.
Remolona will take the helm from July, just as the central bank is winding down its rate-hiking campaign with the pace of price increases slowing, although inflation at more than 6% remains well outside the bank's target of 2% to 4%.
Remolona, who could not immediately be reached for comment, will preside over his first policy meeting as central bank governor on Aug. 17.
The appointment signals continuity at the central bank, Finance Secretary Benjamin Diokno told reporters.
Remolona, who began his stint on the monetary board in August, worked for a combined 33 years at the Federal Reserve Bank of New York and the Bank for International Settlements (BIS).
"His time at the BIS and the Fed will be a boon to the BSP and we expect more of the same from his tenure given that he is an insider, having him as a monetary board member for a year," said ING economist Nicholas Mapa.
"I expect him to carry on the work of Medalla against inflation."
The appointment came a day after the central bank kept steady its benchmark interest rates at 6.25% for a second straight meeting on Thursday.
The central bank has done enough to cool inflation, Medalla said on Friday.
Since May last year, the BSP has raised rates by a total of 425 basis points to combat inflation and support the currency.
A strong majority in a Reuters poll expected the policy rate to stay on hold for the rest of the year, though a few saw a rate cut as soon as year-end.
"There is little reason to raise, there is little reason to cut," Medalla told Bloomberg TV on Friday, when asked about his outlook.
The BSP's latest forecast showed inflation would average 5.4% in 2023 and 2.9% in 2024. - Reuters
