When Brazil’s central bank meets on Wednesday, its outgoing President Ilan Goldfajn will leave the door open for his successor to deliver an unprecedented borrowing cost cut at his first policy meeting.
Since at least 1996, when the country’s current monetary policy board was created, no incoming bank governor has ever cut the benchmark Selic in his first meeting. Roberto Campos Neto, who was appointed by President Jair Bolsonaro and will face his Senate confirmation hearing as soon as this month, could be the first. The chances are so good that when Campos Neto attended an event in Rio de Janeiro last month, several former central bank chiefs joked how it was going to be smooth sailing for him and how he was lucky.
By Raymond Colitt and Mario Sergio Lima via Bloomberg