Galípolo says that Copom minutes become a world interpretation championship at Faria Lima – 07/04/2023 – Market

Appointed by the Lula government (PT) to the Monetary Policy board of the Central Bank, Gabriel Galípolo said this Wednesday (4th) that, with each Copom (Monetary Policy Committee) minutes, Faria Lima starts a world interpretation championship of text.

“I already see that the Central Bank has been raising this concern [de melhorar a comunicação]. It started with a program of lives and with its directors also coming to speak, because there really is a language of its own there”, he said.

“You know, senator, that every time a Copom minutes are released, in Faria Lima, a world championship in text interpretation begins: what each comma means, what each word means. This has been going on for a long time, but nowadays, more and more, given the speed of communication on social networks”, he added.

The declaration took place during a Saturday at CAE (Economic Affairs Commission) of the Senate, where Galípolo was approved by 23 votes to 2. His name must still be confirmed by the plenary of the House this Wednesday, but the expectation is that there will be no obstacles.

The Copom is the BC body responsible for defining the basic interest rate, the Selic. The committee meets eight times a year, every 45 days, and publishes the minutes up to four business days after the meetings.

Amid criticism by Lula and members of the government of the current level of the Selic rate —maintained at 13.75% per year—, senators pointed out problems in the Central Bank’s communication.

Even opposition parliamentarians, such as the leader of the PSDB in the Senate, Izalci Lucas (DF), criticized the autarchy for the language used in formal documents.

“I would ask here if it would not be possible for you to disclose in a more popular, simpler language, so that the entire population understands exactly these issues that are happening in the economy of Brazil”, he questioned.

The servant of BC Ailton de Aquino Santos, appointed by the government to command the Inspection area of ​​the autarchy, also stated that “the Central Bank’s communication needs to improve”. It was approved by the CAE by 24 votes to 1.

“The Central Bank’s language is a very hermetic language, very difficult, and we need to do a very clear work on this, on improving the language. Even in the minutes themselves, I always hear, because I’m in the house, that we have a duty to communicate better,” he said.

“Central Bank communication needs to improve. So, this is on the agenda for the day and, certainly, if my name is approved, this is an issue that I will defend internally, senator.”

Government interlocutors say that Galípolo’s nomination is a way of “marking territory” within the BC, which today has a board composed entirely of names chosen by Bolsonaro. The collegiate’s rigid stance in defense of maintaining interest rates at 13.75% per year has been fertile ground for criticism fomented by the government.

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