The Brazilian Central Bank has been awarded the title of “World’s Best” by Central Banking magazine, recognizing its financial autonomy, established by law in 2021, and its effective monetary policy during the pandemic and in combating inflation.
The bank played a crucial role during the COVID-19 crisis. It conducted operations in national and international markets, easing concerns about monetary financing.
Furthermore, the magazine noted the inflation targets set by the National Monetary Council (CMN).
These goals underscore the Central Bank’s key role in reducing inflation significantly.
Currently, the Selic rate is 11.25%, and it is predicted to fall to 9% by the end of 2024. The Central Bank’s strategies are vital for controlling inflation.
The Monetary Policy Committee’s (Copom) decision to lower the Selic rate from 13.75% in August marks a deliberate effort to manage inflation.
Roberto Campos Neto, the bank’s president, has consistently viewed inflation as a persistent challenge, adopting a contractionary policy.
Brazil’s central bank’s proactive monetary policy sets it apart from the typically reactive measures in advanced economies.
In contrast to those economies, Brazil and other emerging markets have seen inflation as a more enduring issue.
This perspective has been crucial in developing the Central Bank’s successful approach, which has earned global recognition.
However, President Lula recently critiqued Central Bank Chief Campos Neto, blaming his policies for hindering Brazil’s economic growth.
President Lula recently critiqued Central Bank Chief Campos Neto
In an interview, President Lula attributed the delay in job creation and wage growth to Campos Neto’s actions.
Despite a 2.9% expansion in Brazil’s economy in 2023, slower growth is anticipated in 2024.
Campos Neto, appointed by former President Bolsonaro and in office until 2025, could be replaced by Lula next year.
Lula has openly criticized Campos Neto’s interest rate policy despite the latter receiving the title of 2022’s Latin America Central Banker of the Year.