Calling Chard: asparagus and leek risotto with chicken | SaltWireBRASILIA - An outspoken couple weeks for Brazil's central bank chief, including criticism of budget policy and comments scrapping monetary policy guidance, have soured relations with a Finance Ministry team who had been his strongest partners in government.
However, Campos Neto's shifting policy guidance and broadsides against Brazil's fiscal discipline during a marathon of public events in Washington last week caught the Finance Ministry off-guard, potentially burning bridges there. Brazil's currency has now partly recovered its losses this month, but Campos Neto has already revised his policy guidance.
His government chose to keep the inflation target at 3% from 2024 onwards, which helped lower consumer price expectations and opened the door for a rate-cutting cycle that began in August, cutting the benchmark rate 300 basis points so far to 10.75%. So far, two leading candidates have emerged for the role. Gabriel Galipolo worked as Haddad's deputy at the Finance Ministry before becoming the central bank's director of monetary policy in July.