Lula ally picked for Brazil central bank post

In a move that has sparked controversy in Brazil, President Luiz Inácio Lula da Silva has selected a longtime ally to head the country’s central bank. André Brandão, a former executive at HSBC Holdings Plc in Brazil, will take over the position on February 1st, succeeding Roberto Campos Neto.

Brandão is known for his ties to the Workers’ Party, the political party of former president Lula da Silva, who is widely expected to run again in next year’s presidential election. The appointment of a Lula ally to such a key economic position has raised concerns among some economists and market analysts about the independence of Brazil’s central bank.

However, supporters of Brandão’s appointment argue that he has the necessary expertise and experience to lead the central bank at a crucial time for the country’s economy. Brazil is facing a number of challenges, including high inflation and a slow economic recovery from the COVID-19 pandemic.

In a statement, President Lula da Silva praised Brandão’s “extensive experience in the financial sector” and his “deep knowledge of the Brazilian economy.” He also emphasized the importance of maintaining the independence of the central bank.

“The central bank is a fundamental institution for ensuring macroeconomic stability and controlling inflation in Brazil,” Lula da Silva said. “I have full confidence that André Brandão will do an excellent job in this important role.”

Brandão, for his part, said he was “honored” to be appointed to the position and pledged to work to maintain the central bank’s credibility and independence.

“I am aware of the challenges that lie ahead, but I am confident that together with the talented team at the central bank, we can overcome them,” he said.

The appointment of Brandão still needs to be approved by the Brazilian Senate, but given the Workers’ Party’s control of the chamber, it is expected to go through without much difficulty.