Gabriel Galipolo Nominated as Brazil's Central Bank Head

Brazilian President Luiz Inacio Lula da Silva has nominated Gabriel Galipolo, the current director of monetary policy at the central bank, to succeed Roberto Campos Neto as its governor when his term ends in December. Galipolo, a 42-year-old economist with heterodox views, has faced initial skepticism regarding his technical expertise but has since gained support due to his rapport with Lula and recent hawkish comments on interest rates. Lula's frustration with Campos Neto over high interest rates has led to a change in tone, with both Lula and Galipolo now acknowledging the possibility of a rate hike in response to inflation risks. The Senate's confirmation is required for Galipolo's appointment, which is expected to proceed smoothly given the government's focus on the nomination process. This leadership change comes at a time when Brazil's key interest rate remains at 10.5%, amidst ongoing concerns about inflation and economic stability.