The market has been so familiar with the newest Room 501 resident, Bangko Sentral ng Pilpinas (BSP) Governor Felipe “Philip” M. Medalla, the dye-in-cast economist.
“He’s my economics professor,” Tizza Ma, a former colleague covering the BSP and the finance beat now based in San Jose, California, proudly commented following the appointment of economist and UP professor Gov. Philip as the successor of Benjamin E. Diokno, who transferred to the other building of the sprawling BSP complex in Roxas Blvd.
I’ve known Gov. Philip back then in 1998 when I was an economic journalist. He was the socio-economic planning secretary of then President Joseph Estrada. Ten years later, he was appointed a member of the monetary board.
We see each other on numerous occasions – sit-down dinners, cocktails with his wife Ms. Cynthia, whom he endearingly calls Pinky, but I never, ever dawned on me that Gov. Philip is nowhere from an old fashioned, eccentric economist.
Even in our long telephone interviews, the hardcore professor in him naturally comes out with several permutations of unfolding macroeconomic issues and situations and conditions.
Gov. Philip. He could be a stand-up comic, in his own charming way with his deadpan delivery. Though, one must have an ear of a lion because as Tizza shares: “He kept our boring economic classes a little funny but in the middle of the class, he would ask questions. That’s when he knows who’s really listening.”
This clearly shows his pragmatism, he’s realistic, practical and logical. Like, how can you reply to his sharp wit of “I have little need of material things because I am so lucky already!” as his loving eyes looks sideways to Ms. Pinky, his lady luck.
Gov. Philip faced the challenging task of his position while still warming his chair. He was on the edge waiting for the US Federal Reserves’ decision to lift by 75 basis points its policy rate to fight inflation. In response, the Monetary Board acted swiftly by adjusting the policy rate, big time and in step with the US Fed.
Heard, there was one dissenting opinion that the hike should not be 50 basis points. Eventually, the decision to hike 75 basis points was “unanimously voted.”
Looking at the horizon, amidst the lingering presence of the ugly head of inflation, the BSP aims to bring back its inflation target to between two and four percent with an exit plan of “gradual rise interest rate but the US Fed advanced our plan.”
As the wheels of economic activities churn even faster, the BSP is steadfast on its stance that there’ll be “no more off cycle” policy-rate decisions coming.
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