Business as Usual Despite Changes to Brazil’s Central Bank Board
By Mario Sergio Lima and Matthew Malinowski (Bloomberg) — Two proposed personnel changes on the board of Brazil’s central bank signal policy continuity, according to
market analysts and bank personnel consulted by Bloomberg.
Central bank President Ilan Goldfajn nominated Mauricio Costa de Moura and Paulo Sergio Neves de Souza as the directors of administration and supervision, respectively. Both
nominations will have to be approved by the Senate’s economic affairs committee and its plenary.
“I see it as business as usual,” said Alexandre Schwartsman, a former central bank director. “It doesn’t change the direction of monetary policy.” The bank did not immediately
respond to a request for comment.
Brazil’s central bank has shaved 500 basis points from the key rate since October and is expected to bring borrowing costs to the verge of a record low by year’s end. All of the
institution’s key rate decisions have been unanimous since Goldfajn took over as its president last year, and his decision to tap two bank insiders for the director posts means they are unlikely to rock the boat, according to Roberto Padovani, the chief economist at Banco Votorantim.
“Naturally Ilan wants to put together a team with names of people he trusts, or who can steer things in the way he wants,” Padovani said.
Costa de Moura started working in the institution in 2003 and serves as Goldfajn’s chief of staff, while Neves de Souza began his central bank career in 1998 and currently is its
banking supervision department head.
“Paulo Sergio is a high quality technician, a specialist in supervision,” said Daro Piffer, a director of the central bank workers’ union.
Goldfajn, together with eight directors, form part of the central bank’s monetary policy committee, known as Copom, which is responsible for setting the country’s benchmark interest
rate.
Fonte: