08/10/2024 – 6:45
This Tuesday, the 8th, the Senate evaluates the name of the director of Monetary Policy at the Central Bank, Gabriel Galípolo, for the presidency of the authority from 2025 – the first change of command of the monetary authority in the era of operational autonomy. From 10 am, the economist will be questioned by the Economic Affairs Committee (CAE) and, from 2 pm onwards, the nomination must be evaluated by the House plenary.
The expectation is that Galípolo’s second passage through the Senate will be at least as smooth as the first. Since President Luiz Inácio Lula da Silva confirmed the nomination, at the end of August, the director held an extensive “kiss-hand” with at least 48 senators aligned with the government and the opposition, even in the face of the emptying of Congress due to the elections. municipalities.
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The BC president himself, Roberto Campos Neto, entered the field and sought out senators aligned with the opposition and the government of former president Jair Bolsonaro, who nominated him, to endorse Galípolo’s candidacy. This Monday, the chief minister of the Institutional Relations Secretariat, Alexandre Padilha, said that the assessment of the Senate’s reception of the nomination is “positive”.
The possibility of Galípolo’s appointment as head of the BC has already terrified the market, given Lula’s repeated criticism of the conduct of monetary policy and the heterodox inclinations of the economist’s academic production. Part of the distrust has been resolved since August, when he, in several public statements, assumed the role of herald of the increase in interest rates that would begin in September, when the Monetary Policy Committee (Copom) raised the Selic to 10.75%.
The approval of the 42-year-old economist, former executive secretary of Finance, will mean that those appointed by the Lula government will be the majority in the Copom from January 1st, which still causes some discomfort in the market. There are doubts that the BC will increase the Selic enough to make inflation converge to the center of the target, which has maintained the “chronic unanchoring” of expectations.
Galípolo needs a majority of votes in the CAE and in the Senate plenary to be confirmed as president of the BC from January 2025, after the end of Campos Neto’s term, on December 31st of this year. The last time he passed through the House, in 2023, when he was appointed to the Monetary Policy board, he was approved by 23 votes to 2 in the hearing and by 39 to 12 in the plenary.
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