Portugal to Name Next Central Bank Governor Thursday, Centeno Still in the Running

21 July 2025

By Marta Vilar – MADRID (Econostream) – The Portuguese government is set to name the next head of the Banco de Portugal governor following Thursday’s Council of Ministers meeting. While a reappointment of Governor Mário Centeno remains unlikely, it’s still a possibility.

His chances for a second term improved after Prime Minister Luís Montenegro stated on Sunday that Centeno ‘meets all the requirements to be governor of the Banco de Portugal, that is not in question.’

Regarding the new governor's profile, Montenegro said that the profile ‘doesn't change over time, it's always the same.’ It must be someone competent and capable of ensuring that the functions of the central bank were fulfilled, he said.

However, far-right rival party Chega’s reluctance regarding Centeno’s reappointment could weigh on the government’s decision, given that Montenegro depends on the party’s support to pass some legislation and ensure political stability.

‘Mário Centeno should not be reappointed to Banco de Portugal. We are tired of socialist cronies taking over the state and so-called independent institutions’, Chega leader André Ventura wrote on X on Sunday. ‘I urge the Prime Minister not to reappoint him, enough with the cushy posts and incompetence.’

Although the government holds the mandate to appoint the next governor, the Assembleia da República – Portugal’s national parliament – is required to hold a hearing about the selected candidate.

With parliamentary committees entering summer recess after July 25 and not resuming until September 15, it is likely that Mário Centeno will remain in his post at least until the ECB Governing Council meets on September 11, regardless of the government's decision.