Senate committee approves Goldfajn for the Central Bank.
The Economic Affairs Committee (CAE) approved, by 19 votes to 8, the nomination of economist Ilan Goldfajn to head the Central Bank; the nomination will now go to the Plenary for analysis and will be confirmed if it obtains a simple majority vote from the senators; the economist said he intends to maintain the current inflation targeting system and highlighted as a priority keeping the inflation rate low and the currency stable.
Senate Agency - The Economic Affairs Committee (CAE) approved, by 19 votes in favor and 8 against, the nomination of economist Ilan Goldfajn for the presidency of the Central Bank. The nomination will now go to the Plenary for analysis and will be confirmed if it obtains a simple majority vote from the senators. Before that, the nominee will meet with the President of the Senate, Renan Calheiros.
Ilan Goldfajn informed CAE that he intends to maintain the current inflation targeting system and stressed that one of the institution's primary tasks is to keep the inflation rate low and the currency stable.
"Our goal will be to fully meet the target, focusing on its central point. Our history shows that high levels of inflation do not favor economic growth. On the contrary, it disrupts the economy and impacts the lives of the less fortunate classes," he stated.
Technical freedom
Regarding the Central Bank's actions, Goldfajn said he favors the bank's autonomy, not its complete independence. According to him, the government should define its objectives, and the central bank needs the technical and operational freedom to achieve them.
After hearing Senator Vanessa Grazziotin (PCdoB-AM) state that he could not assume the position at the Central Bank because he had been a shareholder and executive at Itaú, Goldfajn stated that he no longer has any connection with the bank and has already divested his shareholding in the institution.
The nominee also promised to act in an "impartial, non-partisan and ethical manner," as he has done in all the places where he has worked professionally.
"My actions did not stem from the fact that I owned the institution or was a banker. Part of the compensation for bank employees today is in the form of shares. A chief economist who conducts research and projections owns these shares and is a partner in that sense. I see no conflict arising from that," he explained.