Central bank’s Diokno named as Philippine finance chief

MANILA: Philippines central bank governor Benjamin Diokno was named the nation’s finance secretary by President-elect Ferdinand “Bongbong” Marcos Jr.

Diokno, whose term at Bangko Sentral ng Pilipinas (BSP) is set to end mid-next year, will succeed Carlos Dominguez in the top finance post, Marcos said in a televised briefing, confirming an earlier Bloomberg report of the central banker’s move.

BSP monetary board member Felipe Medalla will serve as the head of the monetary authority for the remainder of Diokno’s term, Marcos said.

“I am grateful and humbled by the trust given to me by the President-elect to help his administration manage the country’s fiscal

affairs,” Diokno said in a statement, while stressing on policy continuity.

“The two officials are well respected in the local and international business and investment community,” said Michael Ricafort, chief economist at Rizal Commercial Banking Corp in Manila.

“These elements definitely provide a more conducive environment for business and investments.”

Diokno, 74, is no stranger to the government himself, having served as the budget minister under two presidents before moving to the central bank in 2019.

An advocate of what he calls “whole-of-government approach” to address economic headwinds, Diokno steered the Philippine monetary policy through the pandemic-induced crisis.

In his new role, he will be expected to continue working toward sustaining the growth momentum while tailoring fiscal policy to keep inflation in check.

The central bank last week ended its long pause on interest rates, joining a global tightening cycle to fight price pressures fanned by the war in Europe and supply strains caused by virus lockdowns in China.

Inflation is seen overshooting the central bank’s 2% to 4% target band this year.

Meanwhile, economic growth is seen on track to achieve the revised 7% to 8% official estimate from the 5.7% expansion last year.

— Bloomberg