Portugal’s centre-right government intends to appoint a new head of the Banco de Portugal when Mario Centeno’s first five-year term ends, according to people familiar with the plan. Prime Minister Luis Montenegro has decided not to offer Centeno, a former finance minister, a second mandate, the people said. Centeno has led the Portuguese central bank since 2020 and sits on the European Central Bank’s Governing Council, which sets monetary policy for the euro area. Replacing him would give the minority government its first opportunity to influence ECB deliberations, although Lisbon has not yet signalled who it will nominate. Under Portuguese law, the governor is appointed by the cabinet on a proposal from the finance minister for a single renewable term. Centeno’s tenure formally expires later this year. A change at the top of the central bank would come as Portugal navigates slowing growth and still-elevated borrowing costs across the currency bloc.