Roberto Campos Neto calls for extended autonomy of Brazil’s central bank

In a formal session at Brazil’s Chamber of Deputies on Wednesday, the President of the Central Bank (BC), Roberto Campos Neto, expressed the need to extend the autonomy of the institution, emphasizing that operational autonomy alone is insufficient.

The event also paid tribute to his grandfather, the renowned economist, and politician Roberto Campos, who would have turned 106.

A law signed by former President Jair Bolsonaro in February 2021 granted operational autonomy to the Central Bank, stating that the institution possesses “technical, operational, administrative, and financial” autonomy.

However, according to César Bergo, an economics professor at the University of Brasília, these autonomies are not absolute.

Fnancial autonomy implies that the institution can entirely cover its expenses, but that is not the case.

The Central Bank still relies on financial support from the Union.

Bergo also added that the BC does not have full administrative autonomy, especially concerning staffing and attracting skilled professionals.

During the session, Campos Neto praised his grandfather’s advocacy for economic liberalism, including reducing government intervention in the economy and promoting flexibility in labor market relations.

He further noted his grandfather’s critical stance toward Brazil’s current Constitution, claiming that it contained provisions incompatible with revenue sources and often misaligned with globalization and free market advancements.

Roberto Campos had a distinguished career, serving in various governmental roles and was even elected a member of the Brazilian Academy of Letters.

He passed away in 2001 in Rio de Janeiro.

His grandson’s appeal for greater autonomy for the Central Bank carries forward his legacy of championing liberal economic policies and seeking to modernize Brazil’s financial institutions.