Philippine Central Bank Governor Says Rate Explanations Shape Behavior

Bangko Sentral ng Pilipinas Governor Eli M. Remolona, Jr. said the explanation behind an interest rate decision can shape public behavior, underscoring the role of communication in monetary policy.

Remolona made the point in a message prepared for an Oct. 20 central bank communication masterclass hosted by Bangko Sentral ng Pilipinas, the Philippine central bank. He described the narrative behind a policy rate as a way to influence how people respond, alongside a change in the rate itself.

“I believe explaining our decisions can be equally powerful,” Remolona said.

Remolona said central banks had taken cues from the Federal Reserve’s increasing transparency, including policy statements and press briefings. He also discussed the demand for guidance amid global supply shocks and fragmentation.

Bangko Sentral ng Pilipinas hosted the SEACEN masterclass Oct. 20-22. Its sessions covered monetary policy and crisis communication, forward guidance and media engagement. Remolona’s message announced no interest rate decision or digital asset measure.