Appointed by Lula, Galípolo and Aquino take office in BC – 07/12/2023 – Market

Appointed by the government of Luiz Inácio Lula da Silva (PT) to the Central Bank, Gabriel Galípolo and Ailton Aquino took over their new positions this Wednesday morning (12). The ex-executive secretary of the Treasury assumes command of the Monetary Policy department, while the career civil servant starts to head the Inspection department.

The pair will now be able to participate in the next meeting of the Copom (Monetary Policy Committee), responsible for calibrating the basic interest rate (Selic) – currently set at 13.75% per annum.

At the meeting scheduled for the 1st and 2nd of August, it is expected that the BC collegiate, formed by the president (Roberto Campos Neto) and the eight directors of the institution, will start the cycle of interest rate cuts. The current Selic level is the target of criticism by members of the Executive and Legislative branches.

The names of the new directors were approved on Saturday in the Senate on the last day 4. In plenary, Galípolo received 39 votes in favor, 12 against and one abstention. Aquino was approved by the parliamentarians by 42 votes in favor, 10 against and one abstention.

A trusted name of Lula, Galípolo will need to balance between the BC’s legal autonomy and the mission credited to him of collaborating to reduce interest rates, as claimed by the Lula government.

During the sabbatine at the CAE (Economic Affairs Commission), the former number 2 of the Treasury told senators that directors of the autarchy should not give an opinion on the BC’s autonomy, but said that it is “the will of the polls” that determines the economic destiny from the country. In an interview with SheetGalípolo said that Lula is “the only one who gives an opinion, having 60 million votes.”