The Brazilian Senate approved the appointment of Gabriel Galípolo as the new president of the Central Bank starting next year. Proposed by President Lula da Silva (PT), Galípolo, who currently serves as director of monetary policy of the institution, received resounding support of 66 votes in favor and only 5 against, with no abstentions. ANDThis support represents the widest margin for a candidate for the leadership of the Central Bank since 1999.
Galípolo will take over from Roberto Campos Neto, marking the first change in leadership since the implementation of the Central Bank’s autonomy in 2021. Before the vote, he appeared before the Economic Affairs Commission, where he assures that Lula granted him full freedom to make decisions, guided by a “commitment to the Brazilian people”.
Starting in 2025, the Monetary Policy Committee of the Central Bank will have a majority of members appointed by the President of the Republic. Galípolo reaffirmed his determination to bring inflation towards the established goal. With a track record as Lula’s economic advisor during the 2022 electoral campaign, He will assume the direction of the monetary authority until 2028.
The Senate tested Galípolo
During his appearance before the Senate Economic Affairs Committee on October 8, 2024, Galipolo emphasized the importance of independence in the bank’s decision-making, ensuring that his performance as head of the entity will be for the benefit of all Brazilians and will be aligned with the interests of the country. It will delve into Galipolo’s career, his opinions on economic policy and the relationship between his nomination and Lula’s economic vision.
“Every time the president met with me, it was to affirm that I would have complete freedom to decide according to my criteria, without interference,” Galípolo said. Senators believe that Galípolo will replace Campos Neto at a crucial time, given that the Central Bank interrupted a easing campaign in June and began a cycle of rate increases in September.
Since 2021, the Central Bank operates with autonomy, which allows Lula to have differences with political leaders, but without the ability to impose their guidelines. During his appearance, Galípolo was questioned about how he would respond if the president demanded lower interest rates, to which a senator asked him about his “courage.”
In recent months, Galípolo has worked to gain the trust of investors, building a reputation as an “inflation hawk” who does not hesitate to raise borrowing costs and is willing to do what is necessary to control rising prices. Since taking office in 2023, he stood out for his negotiating skills and his more accessible communication style, according to the Brazilian press.
Who is Gabriel Galípolo?
In 2022 he wrote an article with former PT presidential candidate Fernando Haddad that was titled “The creation of a South American currency could boost integration, provide greater monetary stability and strengthen the regional sovereignty demanded by progressive forces.”
In it he stated that the creation of a south american coin It would boost the regional integration process, offering the countries of the region greater monetary sovereignty in the face of the international fragility of their currencies.
This new currency, managed by a South American Central Bank and backed by international reserves, would facilitate regional trade and finance, increasing the joint economic power of South America on the global stage. “Despite the difficulties presented by the economic heterogeneity of the region, this project would strengthen political and economic coordination, providing greater autonomy and monetary stability to the member countries,” says the new president of the Central of Brazil.
He has a degree in Economic Sciences and a Master’s degree in Political Economy from the Pontifical Catholic University (PUC-SP). He was head of the Economic Advisory Service of the State Secretariat of Metropolitan Transportation of São Paulo (2007) and director of the Project Structuring Unit of the Secretary of Economy and Planning of the State of São Paulo (2008). In 2009 he founded Galípolo Consultoria, of which he is managing partner. He was President of Banco Fator from 2017 to 2021.
Source: Ambito
