The Central Bank’s Director of Monetary Policy was appointed this Wednesday (28th August) by Lula to preside over the institution
The president of the Workers’ Party, Gleisi Hoffmann, said this Wednesday (August 28, 2024) that she will not spare Gabriel Galípolo from demanding a reduction in the basic interest rate. Currently the director of Monetary Policy at the Central Bank, he was nominated by President Luiz Inácio Lula da Silva (PT) to preside over the institution from 2025. His name still needs to be approved by the Senate.
“About interest I will always continue [cobrando]. I don’t think we have inflation that justifies the interest rate we have today in Brazil”, said. Questioned by Poder360 regarding Galípolo’s recent statements that he would have no problem in eventually raising the rate, Gleisi said that he will have “that explain very well”.
Gleisi is one of the main authorities who constantly criticizes the president of the Central Bank, Roberto Campos Neto, in relation to the Selic, currently at 10.5%. On August 8, the federal deputy for the PT of Paraná said that he sabotaged the monetary authority “at the service of whoever put him there”in reference to former president Jair Bolsonaro (PL).
“It was the popular vote that gave the president [Luiz Inácio] Lula [da Silva] the prerogative to appoint the next president of the Central Bank. There is no need to talk about political outburst in this decision, much less to fantasize that the management of the ‘independent’ Central Bank was ‘technical’. It was 2 years of sabotage by the Bolsonaro supporter Campos Neto, in the service of those who put him there (and now he will have to answer to the Ethics Committee of the PR for his business dealings). This wrong policy has already cost the country a lot”, declared on his X (formerly Twitter) profile at the time.
On August 22, Galípolo had said that the directors of the monetary authority do not have the “embarrassment” to eventually raise the base rate, the Selic, if necessary. Later that same day, he backed down and said he had expressed himself poorly.
Galípolo’s nomination to head the Central Bank was made by the Finance Minister, Fernando Haddad, early in the afternoon at the Planalto Palace, shortly after a meeting with Lula.
Galípolo will replace Roberto Campos Neto, who has been in charge of the BC since February 28, 2019. Appointed by the former president Jair Bolsonaro (PL), Campos Neto collected criticisms of the Lula government Luiz Inacio Lula da Silva (PT), mainly because, in the Executive’s assessment, it reduced the basic interest rate slightly.
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