Brazil’s Lula to Appoint Galipolo as Central Bank Chief, According to Finance Minister

By Marcela Ayres

BRASILIA/SAO PAULO – Brazil’s President Luiz Inacio Lula da Silva has selected Gabriel Galipolo, currently the central bank’s monetary policy director, to succeed Roberto Campos Neto as the institution’s next governor. Campos Neto’s term is set to conclude in December. Finance Minister Fernando Haddad made the announcement on Wednesday.

"It is a great honor, a significant responsibility, and I am very pleased," Galipolo expressed to reporters in Brasilia, where he was accompanied by Haddad. His appointment had been widely anticipated.

Before officially assuming his role in January, Galipolo’s appointment must receive approval from the Senate’s economic affairs committee and subsequently the full Senate. Haddad indicated that the Senate would determine the best timing for Galipolo’s confirmation hearing.

According to a source familiar with the situation who requested anonymity, the Senate hearing is expected to occur on September 10, aligning with the Upper House Economic Affairs Committee’s schedule. This timeline would allow for Galipolo to secure senators’ approval before the next monetary policy meeting on September 17-18, coinciding with the government’s plan to elevate the significance of his remarks ahead of Campos Neto’s departure.

Current governor Campos Neto congratulated his successor in a statement, affirming that "the transition will be carried out as smoothly as possible, preserving the institution’s mission."

Following the announcement, Brazil’s currency weakened further against the U.S. dollar, while interest rate futures rose. Haddad noted that the government would now focus on identifying Galipolo’s successor as monetary policy director, alongside the forthcoming nominations for directors of regulation and institutional relations, which should occur by the end of the year.

Galipolo, 42, previously served as the deputy finance minister and holds a master’s degree in political economy from a prestigious university in Sao Paulo. His collaboration with Lula began in 2021, influenced by his long-standing association with Luiz Gonzaga Belluzzo, a key adviser to Lula and a professor known for his unorthodox economic views.

In addition to his academic credentials, Galipolo’s diverse professional history includes serving as an economic adviser to the Sao Paulo state government, leading an investment bank, and advising on public-private partnerships.

As the monetary policy director, Galipolo has expressed a hawkish stance, suggesting that a rate increase should be considered in light of rising inflation—a position that helped stabilize asset prices after significant depreciation of the Brazilian real.

Currently, the Selic benchmark interest rate stands at 10.5%. Galipolo’s recent comments contrast sharply with his earlier position in May, when he aligned with a minority of central bank directors advocating for a more substantial rate cut than what was ultimately agreed upon.

This division raised concerns about the central bank’s potential tolerance for inflation, especially as Lula will govern a majority of the nine-member board starting next year.

Galipolo has publicly stated that Lula respects the independence of the rate-setting committee, and he has commended Campos Neto’s tenure, indicating that he is "taking a victory lap" as he concludes his term.

Roberto Campos Neto, who was appointed by former President Jair Bolsonaro, has faced ongoing criticism from Lula regarding perceived high interest rates and claims of politicization within the central bank.