Filipino Marcos appoints new chief financial officer, Central Bank governor | business and economy

The President-elect points to rising inflation and job creation as his government’s priorities.

Philippine President-elect Ferdinand Marcos Jr. has announced his election as finance minister and central bank governor before taking office next month.

Benjamin Diokno, the current governor of Bangko Sentral ng Pilipinas (BSP), will be the next finance chief, Marcos said Thursday in an interview streamed on Facebook.

Felipe Medalla, a member of the central bank’s monetary committee, will replace Diokno as central bank governor.

Marcos said his first priority will be the economy, with a particular focus on rising inflation and job creation.

The appointments mark another step toward political continuity from Marcos, who is expected to expand on many of incumbent Rodrigo Duterte’s economic policies, including a significant infrastructure initiative.

Diokno, a budget secretary under the Duterte administration before he was appointed central bank governor, said he has a duty to carefully manage the economy.

“As finance minister, I will endeavor to continue to balance prudently and carefully between the need to support economic growth on the one hand and maintaining fiscal discipline on the other,” Diokno said in a statement.

Marcos also appointed Emmanuel Bonoan Secretary of Public Works and Alfredo Pascual Secretary of Commerce.

The Philippine stock index was flat on Thursday after Marcos made announcements about his economics team.

The BSP hiked interest rates on May 19 for the first time since 2018, joining its peers around the world to counter rising prices.

Marcos, a polarizing political figure due to his dictatorial father’s 20-year rule, is inheriting a fast-growing economy, although investors have expressed concerns that he lacks a clear economic agenda.

The current government this week narrowed its growth target to 7-8% from 7-9% to account for external risks after reporting 8.3% growth in the first quarter.

Analysts say the new government will have to deal with a huge debt load from the current government’s pandemic borrowing, which could limit its ability to borrow more to fund government projects or support growth.