The Head Of The Brazil Central Bank Asserts That The Bank's Autonomy Obstacles Have Been Surmounted

During his address at an institutional event, he asserted that the central bank has effectively adhered to technical guidelines when making decisions throughout this new administration, which marked the first time that the executive branch had to coexist with a central bank chief appointed by the previous administration.

"Obviously there were noises from the first big autonomy test, but I think they were overcome," Campos Neto commented.

In January, Lula, a political leftist, assumed the presidency amidst scepticism regarding inflation objectives and monetary policy, which he considered to be unreasonably low and detrimental to economic expansion.

In contrast, his administration upheld the inflation objective of 3% for the period extending to 2024 in June, a stance that was endorsed by the central bank.

Following an approaching year of stagnant interest rates, policymakers commenced an easing cycle in August. As of now, the cost of financing has decreased by 150 basis points, to 12.25%.

Campos Neto, whose term concludes in December 2024, expressed his discontent with the central bank's failure to enhance employees' working conditions. He acknowledged that employees of central banks were dissatisfied with their benefits and compensation.

Additionally, he stated that the central bank's financial and administrative autonomy comprise a medium-term objective.

In November, Senator Vanderlan Cardoso put forth a constitutional amendment in this regard, contending that permitting the bank to finance its operations through seigniorage—commonly defined as a profit generated from money printing—is consistent with the practises of numerous central banks across the globe.