Metro Manila (CNN Philippines, May 31) — Incoming Bangko Sentral ng Pilipinas Governor Felipe Medalla sees smooth coordination among the economic managers of President-elect Ferdinand “Bongbong” Marcos Jr.
Medalla, told CNN Philippines’ New Day that he expects an “excellent” relationship with the economic team, having shared a similar background and philosophy in key areas.
“As far as I can see, coordination among the economic managers will be very, very good, in fact I would say excellent,” Medalla said.
He said he has known incoming National Economic and Development Authority Secretary Arsenio Balisacan and incoming Department of Finance Secretary Benjamin Diokno “for decades.”
“We fall in the same direction because more or less we have the same background and the same economic philosophy which is to have an economy that is very market-friendly, an economic environment that is very predictable, and of course, hopefully an economy that is going rapidly and at the same time is very inclusive,” he said.
Medalla particularly pointed out his relationship with Diokno, who currently leads the BSP.
“We’ve always worked together in everything from policy to supervision of banks, what to do with the payment system, including the printing of the new polymer currency notes. I know exactly what he’s thinking and he knows exactly what I’m thinking,” he added.
Before he was appointed as the fifth BSP governor, Diokno served as budget secretary for the first three years of the Duterte administration. He was also appointed budget secretary under the Estrada administration where he worked with Medalla, who was the NEDA director general at the time.
“When we disagree, we know the way and we can find a way, find a middle ground, something that works,” Medalla said.
When asked how he will maintain low and stable inflation in the coming years, Medalla pointed to the central bank’s three pillars of price stability, financial stability, and an efficient, reliable payment system.
“We hope for also an inclusive one. So that is essentially the framework. Right now, the inflation is high because of external factors, but inflation is a growth rate. The moment the price goes up, sooner or later, the rate of increase will normalize,” he said. “So, it’s a matter of finding the right increase rates, the right level of liquidity and the right management.”
Medalla, a long-time member of the Monetary Board, will serve Diokno’s unexpired term set to end July next year.
Marcos has named several members of his Cabinet as he prepares for his inauguration as the next president of the country on June 30.
Aside from Diokno, Balisacan and Medalla, he previously announced that he has chosen BSP Assistant Governor Amenah Pangandaman to head the Department of Budget and Management, SMC Tollways President and Chief Executive Officer Manny Bonoan to lead the Department of Public Works and Highways, and Management Association of the Philippines President Alfredo Pascual as Department of Trade and Industry secretary, among other appointees.
