Brazil Senate Excludes Galipolo’s Confirmation Before Next Central Bank Meeting, Reports Reuters

A Senate committee hearing to confirm President Luiz Inacio Lula da Silva’s nominee for the head of Brazil’s central bank is unlikely to occur before the monetary authority’s interest rate-setting meeting this month. It may be postponed until October.

In late August, Lula appointed Gabriel Galipolo, the central bank’s monetary policy director, to replace Roberto Campos Neto, whose term concludes in December.

The government had aimed to have Galipolo confirmed before the upcoming monetary policy meeting on September 17-18, hoping to elevate the importance of his comments as Campos Neto’s departure nears.

However, Vanderlan Cardoso, the senator who leads the economic affairs committee and is responsible for scheduling the hearing, announced on Tuesday that it would not take place on September 10, contrary to speculation from some government officials.

Galipolo’s nomination requires approval from the economic affairs committee before proceeding to a full Senate vote for him to assume the role in January.

Cardoso’s announcement means Galipolo will not be able to secure confirmation prior to the policy meeting, as the central bank board enters a silent period from the week before to the week after the meeting.

Institutional Relations Minister Alexandre Padilha had suggested on Monday that the government was working to get Galipolo confirmed by the following week, likely on September 10, but those plans were dashed by Cardoso’s declaration.

“There are still some uncertainties regarding the hearing, so I wanted to inform you it will not occur on September 10,” the senator stated.

This also indicates that the hearing will probably be delayed until next month. Brazilian local elections are set for October 6, meaning most lawmakers will be out of the capital to assist with campaigning in their respective states.