Roberto Campos tries to control Galípolo interviews – 07/19/2023 – Mônica Bergamo

An attempt to condition interviews of Central Bank directors to the prior approval of the institution’s president, Roberto Campos Neto, increased tension in the institution and threatens to further deteriorate the Lula government’s relationship with the BC leader.

Discussion of an internal document that suggests that “issues related to communication with the press be subordinated directly to the president of the Central Bank” returned to the agenda after Lula appointed the former executive secretary of the Ministry of Finance, Gabriel Galípolo, to head the directorate of bank’s monetary policy. And it has generated heated discussions in the institution.

Galípolo’s position, aligned with that of the government, is clear. He thinks it’s past time for the BC to lower interest rates and that maintaining rates at high levels could fatally compromise the country’s growth.

His interviews, therefore, would expose the split that exists in the institution today, which would be pressing and bothering Roberto Campos.

As a reaction, the president of BC would be trying to apply a kind of “gag law” on his directors.

The proposal has already been discussed even with technicians from the bank, who try to ban it, stating that BC directors have a mandate, independence and autonomy guaranteed by law, which would leave them free to talk to journalists as they see fit.

Campos could not veto the conversations, since he is not the head of the directors.

The only rule to be followed by them is the one that prohibits directors from expressing themselves in the week before the Copom (BC Monetary Policy Committee) meeting that sets interest rates, and also in the subsequent one. Meetings take place every 45 days.

They also cannot make considerations about interest rates.

Although he cannot speak directly about this subject now that he is part of the BC, Galípolo has made considerations about economic indices and Lula’s legitimacy to criticize the Central Bank.

He has already said that “it is not up to any economist, no matter how excellent he may be, to impose what he understands to be the economic destiny of the country in spite of the democratic will”.

Directors aligned with Roberto Campos complained about the speeches: coming from a member of the BC itself, it would leave the president of the institution even more exposed to pressure from Lula and from senators unhappy with the high interest rates in the country.

Roberto Campos is even the target of a petition organized by the president of the PT, Gleisi Hoffmann, and deputy Lindbergh Farias (PT-RJ) that asks for his removal from office.

The initiative is being seen by members of the bank and the Lula government as an attempt to censor the new director of the bank, and has been dubbed the “Galípolo vote”.

A member of the government became aware of the document and stated that it is “the AI-5 of the Central Bank”, referring to the institutional act of the military dictatorship that hardened the regime.

Asked about the document that circulated internally with proposals for new rules for the bank’s communication, the BC stated, in a note, that “deals with a variety of complex matters with great economic and social impact. In this context, the internal rules for the BC’s communication with the various audiences aims to (i) provide society with transparency about the BC’s activities, (ii) avoid asymmetry of information between market agents and (iii) balance the service provided to communication vehicles”.

He also cited as an example “the Regulation for the Copom, which includes a section on the Silence of the Copom, and the guidelines for assisting external audiences”.

And he continued: “These rules are previously analyzed by the technical and legal areas of the BC, approved by consensus through a vote by the Collegiate Board, are applicable to all its leaders and are implemented by the entire BC, under the coordination of the Department of Communication and the Press Office Naturally, these rules are updated over time based on new technical and legal analyzes and new consensus in the Collegiate Board.

Over the years and, more recently, with the approval of autonomy, the BC has been expanding the frequency and channels of communication with society and the press. For example, one can notice a greater frequency of interviews and other public manifestations by its leaders, as well as greater participation in social networks and, recently, the beginning of weekly lives on YouTube”.

The BC note also says that, “despite the necessary organization of this variety of communication instruments, every BC director has full freedom to freely express his opinions in the channels he deems appropriate.

Director Gabriel Galípolo did not comment.

_{with BIANKA VIEIRA, KARINA MATIAS It is MANOELLA SMITH}

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