Lula imposed an ally in a key position of the Central Bank

Lula imposed an ally in a key position of the Central Bank

The president scored a key victory at a time when he was facing the director of the entity Roberto Campos Neto, close to Jair Bolsonaro.

VICTORY. Lula accuses Campos Neto of holding Brazil “hostage” for keeping the interest rate at 13.75% since September.

Brasilia – The Vice Minister of Economy of Brazil, Gabriel Galípolo, was appointed yesterday director of Economic Policy of the Central Bank, in a measure that tries to confront the monetary policy carried out by the head of the monetary authority, the Bolsonaro member Roberto Campos Neto, with a legal mandate until 2024 and accused of raising the basic interest rate to cool the economy.

The announcement was made by the Minister of Economy, Fernando Haddad, within the framework of the staggered change in the Central Bank, which since 2021 is independent of the Executive Branch and maintains the president of the entity, the economist appointed by former President Jair Bolsonaro and approved by the Senate.

Lula accuses Campos Neto of holding Brazil “hostage” for maintaining the interest rate at 13.75% since September with the aim of reaching the target of 3.25% inflation in 2023, a policy that, according to the president, increases the profit of the holders of titles and causes recessive effects in the economy.

Galípolo, who was director of the Fator investment bank, approached Lula’s team in the electoral campaign and, as Haddad’s right-hand man, carried out the South American common currency project called Sur, an initiative to de-dollarize trade, especially with Argentina.


In addition to Galípolo, Minister Haddad appointed career civil servant Ailton Aquino dos Santos as supervisor of the Central Bank.

Both Galípolo and Dos Santos must be approved by the Senate. “Everyone is witness to the effort that has been made to allow greater coordination of fiscal and monetary policies, in the sense of integrating more and giving the country a uniform perspective, a single direction,” Haddad told reporters.

If approved as director of monetary policy by the Senate, Galípolo will be one of the directors that will make up the Central Bank’s Monetary Policy Committee (Copom), participating in the collegiate discussions for the formation of the basic interest rate.

Asked about possible market criticism of the government’s indications, Haddad said that Galípolo is known by economists and is “co-author of all the public policies that are being addressed to the National Congress.”

“The two people are highly technical and highly regarded even by the National Congress,” he said.

Galípolo is not affiliated with any political party and has been one of Lula’s most important advisors to overcome resistance in the financial market.

Source: Ambito

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