MercoPress. South Atlantic News Agency

Brazilian Senate gives nod to future BCB CEO

Galípolo is Lula's choice to replace Roberto Campos Neto, who stems from the Jair Bolsonaro administration

Brazil's Federal Senate Tuesday greenlighted by 66 votes to 5 the appointment of Gabriel Galípolo as the next Central Bank (BCB) CEO to succeed Roberto Campos Neto, who stems from former President Jair Bolsonaro's administration and whose term ends Dec. 31.

President Luiz Inácio Lula da Silva's nominee was given the nod in a secret vote in the plenary. The Senate's Economic Affairs Committee (CAE) had unanimously agreed (all 26 members) after a four-hour hearing on Galípolo's choice. He is to chair the BCB for four years.

During Tuesday's interview, Galípolo stressed the importance of acting independently. His decisions would be guided by his commitment to the Brazilian people and the inflation target set by the National Monetary Council, he explained.

Galípolo also argued that he would not be pressured to lower interest rates and stressed the need to maintain a restrictive Selic rate for as long as necessary to control inflation. When announcing his pick for the post, Lula said that Galípolo would be granted full autonomy. The president also described him as ”a very competent person and a Brazilian who likes Brazil.”

“I do not like to use the word 'genius' [but] he is very competent,” added the head of state.

Due to its cleaner energy matrix, Brazil has advantages over other countries regarding climate change, insisted the economist, who also spoke before the Upper House about agricultural financing and the impact of online gambling on sports on the country's economy.

Galípolo's main challenge will be to win the confidence of the financial market and ensure the continuity of monetary policy aimed at controlling inflation after Campos Neto's high interest rates.

A former Secretary of Economy and Transport for the São Paulo government, Galípolo worked at the Federation of Industries of the State of São Paulo (Fiesp), the Brazilian Center for International Relations, and Banco Fator, the institution he founded. In 2023, he took up the post of executive secretary of the Finance Ministry until he was nominated and approved for the Central Bank's Monetary Policy board where he has been sitting since July last year.