Brazil Lula’s central bank nominees to sit out next rate decision

BRASILIA (Reuters) – President Luiz Inacio Lula da Silva’s first nominees for top positions in Brazil’s central bank will not be involved in the upcoming interest rate decision on June 21 because their names will not be submitted for necessary approval by the Senate until the following week.

The Senate’s Economic Affairs Committee announced on Wednesday that it would vote on June 27 on the nomination of Gabriel Galipolo, the executive secretary of the Finance Ministry, for the role of monetary policy director in the central bank, and Ailton de Aquino, a central bank official, for the position of supervising director.

Lula nominated both in May. After the hearing in the commission, they will need to receive the endorsement of the full Senate.

Central bank chief Roberto Campos Neto, picked by former President Jair Bolsonaro, will complete his term in December 2024 as per an autonomy law passed in 2021.

Lula, who has criticized the central bank for long holding its interest rate at a cycle-high of 13.75%, will eventually replace all nine members of the bank’s board, which decides monetary policy.

However, the new board members will have a majority only after Campos Neto departs from his position.

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