Philippines’ Marcos appoints new CFO and central bank governor – Reuters
MANILA (Reuters) – Philippines President-elect Ferdinand Marcos announced on Thursday that current central bank governor Benjamin Diokno will be his finance minister when he takes office next month.
Diokno will be replaced by Felipe Medalla as governor of Bangko Sentral ng Pilipinas (BSP), Marcos said in an interview by his new press secretary, which was posted on his Facebook page.
Medalla is a member of the central bank’s monetary council.
Marcos said his top priority would be the economy, especially tackling rising inflation and the need for job creation.
The appointments point to another continuity move from Marcos, who is expected to expand on many of incumbent Rodrigo Duterte’s economic policies, including a major infrastructure overhaul.
Diokno, budget secretary under the Duterte administration before he was appointed central bank governor, said he was committed to carefully managing the economy.
“As finance secretary, I will strive to continue to carefully and carefully balance the need to support economic growth, on the one hand, and maintain fiscal discipline, on the other,” Diokno said in a statement. communicated.
Marcos also appointed Emmanuel Bonoan as public works secretary and Alfredo Pascual as commerce secretary.
The broader stock index was flat on Thursday, after Marcos’ announcements about his economics team.
On May 19, BSP raised interest rates for the first time since 2018, joining peers around the world in a rush to stem mounting inflationary pressures.
Marcos inherits an economy on stronger footing, having grown 8.3% in the first quarter from a year earlier.
The current government this week cut its growth target to 7.0%-8.0% from the previous range of 7.0%-9.0% to account for external risks.
Analysts say the new administration will face huge debt from the current government’s pandemic borrowing, which could limit its room to take on more debt to finance government projects or support growth.
(Reporting by Neil Jerome Morales and Enrico dela Cruz; Editing by Ed Davies, Martin Petty)