New BSP governor sees inflation falling within target by end-2023

By Julito G. Rada

BANGKO Sentral ng Pilipinas Governor Eli Remolona said Monday he will continue the priorities that bore fruit under the leadership of Felipe Medalla and work harder to do better during his term.

Remolona underscored during the turnover ceremony two points in his speech: pagpapatuloy and pagpapabuti (continuation and improvement), saying Medalla’s “resolute leadership during trying times” allowed the BSP to find solid ground for the country’s post-pandemic recovery.

“And on this ground we can continue to build... Together we must build on the progress we have already made. Inflation has finally started to come down as Gov. Philip explained. And if our

NGCP seeking higher capex to link RE projects

By Alena Mae S. Flores

NATIONAL Grid Corp. of the Philippines is seeking the government’s assistance for higher capital expenditures to roll-out transmission facilities for the entry of more renewable energy power plants in line with the target of a 50-percent share in the power mix by 2050.

“We hope for the government and regulator’s support in crafting policies and allowing NGCP to have enough capex to fund the required projects to support RE. This move towards a greener and more sustainable grid requires a holistic approach and we hope for the synergy among all the energy players to ensure the fruition of these efforts,” NGCP said in a statement.

It said the Transmission Development Plan considers variable RE and committed RE plants which will connect to the grid in the next few years.

It said capex-heavy projects would require regulatory approval from the Energy Regulatory Commission.

“The ERC, among all agencies, will be centrally crucial to the success of all this,” it said.

It said the Department of Energy recognized that transmission projects to support their recent off-shore wind projects were not included in NGCP’s 5th regulatory period application with the ERC.

models are right, we should be back in our target range even by the end of this year,” Remolona said.

He said the banking system remained strong and their capital and liquidity are more than adequate.

“That’s why, in recovering from the pandemic, our banks have been a source of strength, unlike in previous crises, when they were a source of weakness.

The plumbing of our system—our payments and settlement system—has in- creasingly become digitalized and efficient. We are delivering greater and greater access to financial services for our people,” he said.

Remolona said everybody should work harder. “I know we have what it takes to do even better—especially if we work together.”

Medalla said the BSP survived 2022, a year full of extreme challenges highlighted by elevated inflation, higher interest rates, persistent COVID-19 pandemic and the spiraling impact of the continuing geopolitical crisis between Russia and Ukraine.

Medalla said the regulator managed to ensure the uninterrupted supply of money across the country, kept the banking system strong and stable, made the financial system more inclu-

Pse Index Closing

sive and battled record-high inflation.

“It was a year like no other. We encountered unprecedented challenges over which the BSP has little control. Of course, we call them supply shocks. Supply chain disruptions, here and overseas, triggered price hikes in basic commodities, transport and other services,” he said.

“We had to act decisively. And we did. During my term as governor, the BSP raised the policy rates by a total of 350 basis points, on top of the 75 bps already taken before I became governor,” Medalla said.

He said combined with non-monetary measures, the BSP’s actions helped reduce second-round effects and re-anchor inflationary expectations. The BSP already brought inflation to a target-consistent path of 2 percent to 4 percent.

SEMIRARA’S AWARD. Integrated energy company Semirara Mining and Power Corp. is recognized as one of the best energy companies in the Philippines, bagging the silver award in the 2023 Asia’s Best Managed Companies Poll by FinanceAsia. Receiving the award in Hong Kong are SMPC president and chief operating officer Maria Cristina Gotianun and chief finance officer Carla Cristina Levina. The annual poll serves as a prestigious benchmark of Asia’s top-performing companies, showcasing organizations that have demonstrated superior performance and corporate behavior over the past year.