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Marcos Vows Policy Continuity Under New FinMin, Diokno Returns To BSP

PHILIPPINES

Philippine President Ferdinand Marcos Jr. pledged policy continuity amid a a revamp of his economic team, which included the installation of veteran lawmaker Ralph Recto as the new Finance Secretary. The head of state told reporters that his administration "are continuing the policies that we have laid out from the beginning".

  • Recto replaces Benjamin Diokno, who returns to Bangko Sentral ng Pilipinas, where he served as Governor between 2019-2022 before being appointed to the Cabinet. Diokno will join the Monetary Board currently headed by Governor Eli Remolona.
  • Marcos warned that external risks may fuel inflation and weigh on the economic outlook and tasked the new Finance Secretary with pushing for pro-growth measures in parliament and devising measures to contain price pressures.
  • Meanwhile, Recto noted that fiscal sustainability will be his priority and vowed to pay special attention to tax collection. While serving as Senator, Recto pushed legislation that increased the VAT by 2pp to 12%, which cost him his seat in the 2007 election.

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