Posted on Feb 17, 2019 2021 at 6:44Updated Feb 17, 2019 2021 at 7:08
Irony of history. Thirty years ago, Roberto Campos defended in Congress the principle of a Brazilian central bank autonomous from political power. Today, it is his grandson, Roberto Campos Neto, current president of Banco Central do Brasil, who is reaping the fruits of this long battle. The law on the autonomy of Banco Central do Brasil was passed in Congress last week. The president and the eight directors of the monetary institute will always be appointed by the President of the Republic, as is currently the case. But they will be protected by fixed terms of four years. In other words, they cannot theoretically be removed from their functions in the event of disagreement on monetary policy.
“It’s a big step forward. This lack of independence was bad for Brazil ”, says Mauricio Cárdenas, former Colombian finance minister. Ten years ago, for example, former President Dilma Rousseff urged the central bank to cut interest rates, which resulted in a surge in inflation.