Gabriel Galipolo Nominated for Brazil’s Central Bank

By Marcela Ayres

BRASILIA (Reuters) – Gabriel Galipolo, nominated to be the next head of Brazil’s central bank, is a 42-year-old economist known for his non-traditional economic views.

His nomination by President Luiz Inacio Lula da Silva was confirmed on Wednesday by Finance Minister Fernando Haddad and is expected to be approved by the Senate. If confirmed, Galipolo will succeed Roberto Campos Neto when his term ends in December.

Currently, Galipolo serves as the bank’s director of monetary policy and has previously worked as the second-in-command at the Finance Ministry.

His appointment in July of last year raised concerns in financial markets regarding his expertise and unorthodox views, including advocating for state intervention to address social needs and suggesting a broader role for the central bank across the yield curve.

However, he has gained favor among economists and is considered the best candidate to succeed Campos Neto due to his rapport with Lula.

Lula refers to Galipolo as a “golden boy,” praising his competence and honesty.

For two years, Lula expressed frustration with Campos Neto over high interest rates, currently at 10.5%. Recently, Lula indicated a willingness to support necessary interest rate hikes, coinciding with Galipolo’s remarks about the possibility of rate increases in response to ongoing inflation risks.

Galipolo’s statements alleviated investor concerns regarding leniency towards inflation, indicating his persuasive skills with the president.

A source noted Galipolo’s rapid evolution within the central bank, aligning with its technical stance.

Introduced to Lula in 2021 by adviser Luiz Gonzaga Belluzzo, Galipolo co-authored works criticizing multinational companies’ financial practices.

Despite his earlier criticisms, Galipolo has not altered central bank exchange rate policy, even amid a decline of over 12% in the Brazilian real against the U.S. dollar this year.

Galipolo holds a master’s degree in political economy from the Pontifical Catholic University of Sao Paulo and has served as an economic adviser and CEO of Banco Fator, founding a consultancy focused on public-private partnerships.

While at the Finance Ministry, he won goodwill as a negotiator and listener, assisting Haddad in securing a new framework for public accounts.

Senator Vanderlan Cardoso remarked, “He’s a good choice, he’s already been vetted here, everything’s fine, people liked him,” regarding the nomination that awaits Senate confirmation before it is presented to the full Senate.