Brazil Senate Committee Postpones Vote On Central Bank Financial Autonomy

• Brazil's Senate Constitution and Justice Committee postponed for a week voting on a constitutional amendment proposal granting the central bank financial autonomy to allow time to draft a new consensus text. The decision followed a suggestion by Senator Jaques Wagner, the government leader in the Upper House.
• After attending a meeting with Finance Minister Fernando Haddad earlier on Wednesday, July 10, Wagner said the government agreed with granting financial autonomy to the monetary authority but did not support turning the institution into a public company, as proposed in the original draft.
• Brazil's Congress granted the central bank operational autonomy in 2021, separating the central bank governor's term from that of the country's president. Financial autonomy would give the bank additional independence from the executive.
• Since taking office in January 2023, President Luiz Inacio Lula da Silva has expressed discomfort with working with a monetary policy chief appointed by his predecessor, Jair Bolsonaro. However, Governor Roberto Campos Neto has publicly defended financial autonomy as a necessary step for the central bank to have its own budget, allowing it to improve staffing and address technological challenges.

 (Source: Reuters)