"Golden Boy": Gabriel Galípolo Takes Over Central Bank to Lead Post-Bolsonaro Era

247 - Gabriel Galípolo, the current Director of Monetary Policy at the Central Bank, has been chosen to replace Roberto Campos Neto as the head of the institution starting in 2025. His appointment marks the end of a tumultuous period at the Central Bank, where Campos Neto faced criticism for maintaining high interest rates during Lula’s government and for his connections to the Bolsonaro administration, including figures like Jair Bolsonaro and Governor Tarcísio de Freitas. Many in the government believe that Campos Neto, by keeping interest rates high, sabotaged President Lula’s economic policies aimed at boosting infrastructure investments and development.

Galípolo, on the other hand, is a respected technical figure both in the market and within the government. A former Executive Secretary at the Ministry of Finance, he has worked at the Federation of Industries of the State of São Paulo (Fiesp) and chaired Banco Fator. Described by Lula as the "golden boy," Galípolo stands out for his experience in public policies and his ability to navigate complex political environments, making him the ideal choice to lead the Central Bank in a new direction.

Despite hopes for a more flexible stance on the Selic rate, Galípolo has been cautious in his speeches. Even under pressure for a faster reduction in interest rates, he has emphasized the importance of keeping inflation under control to avoid risks to the economy. This more pragmatic approach has brought relief to markets, which feared excessive easing.

With Campos Neto’s departure, Galípolo assumes the presidency of the Central Bank with the mission to break away from the previous administration, which many viewed as an obstacle to the country's economic growth. The new president will need to balance reducing interest rates with maintaining economic stability, ultimately aiming to unlock pro-development policies.