Central Bank: Senate postpones Galípolo to 7/4 – 06/21/2023 – Market

The Senate postponed to July 4 the questioning of the former executive secretary of the Ministry of Finance Gabriel Galípolo for the BC’s (Central Bank) Monetary Policy directorate.

The sabbatine at the Senate CAE (Economic Affairs Commission) was scheduled for next Tuesday, June 27, but was postponed because of the June festivities —which mobilize parliamentarians from the Northeast region.

“The decision came from an agreement between the senators, due to the commitments of the senators in their states next week”, said in a note the president of CAE, senator Vanderlan Cardoso (PSD-GO), without detailing what the colleagues’ commitments are.

The sabbath session of the Central Bank server Ailton de Aquino Santos, appointed to lead the Inspection area of ​​the autarchy, was also rescheduled. The vote on the Senate floor has not yet been defined, but it is expected to take place on the same day.

Galípolo was chosen by the Lula government (PT) to take over one of the most important directorates of the Central Bank after the presidency – occupied today by Roberto Campos Neto, appointed by former president Jair Bolsonaro (PL).

Lula’s trusted name, Galípolo will need to balance between the BC’s legal autonomy and the mission credited to him to open the way for the cut of the Selic – an appeal by the president echoed by members of the government and by PT cadres since the beginning of the term .

The assessment is that the entry of Galípolo may contribute to open divergence or expand discussions at Copom (Monetary Policy Committee) meetings, initiating a convincing process within the institution to cut the basic rate.

In the future, the bet is that he will be chosen by Lula to succeed Campos Neto, whose term as president of the Central Bank ends in December 2024.

On the day he was announced for the vacancy, Galípolo drew praise even from the opposition, as Folha showed. The president of the Senate, Rodrigo Pacheco (PSD-MG), stated that the choice “certainly” pleases.

Former Minister of the Civil House of Bolsonaro, Ciro Nogueira (PP-PI) said that Galípolo “is the best name in the economy” and should be approved without major difficulties. “A great nomination, but it will leave a very large vacuum in the economy”, said the senator to the report at the time.