Brazil’s Lula to name new central bank head in coming weeks, says finance minister
2024.08.13 18:29
BRASILIA (Reuters) -Brazilian Finance Minister Fernando Haddad said on Tuesday that President Luiz Inacio Lula da Silva will announce in coming weeks his choice to lead the central bank after current chief Roberto Campos Neto’s term ends this year.
Speaking to journalists, Haddad said the announcement date will depend on a meeting between Lula and Senate President Rodrigo Pacheco.
The two will discuss the timing of the Senate hearing for the nominee, whose name must be approved by the senators, Haddad said.
Haddad also told journalists the central bank must analyze various factors before making its policy decision.
His comments followed hawkish remarks from central bank monetary policy director Gabriel Galipolo about a rate hike being on the table amid a scenario considered uncomfortable for reaching the 3% inflation target.
Galipolo, who previously held a second-in-command position at the Finance Ministry, is seen as the frontrunner to succeed Campos Neto and has already been praised by Lula as a “golden boy.”
“Raising rates is not always the best answer,” said Haddad.
He noted that keeping rates at a restrictive level is sometimes better, while pointing out that the central bank’s rate-setting board members have the mandate to make the best decision.
