Government should nominate a market representative for the Central Bank's board of directors, says Lauro Jardim.

247 Columnist Lauro Jardim says that the new Director of Monetary Policy appointed by the Lula government will be someone with ties to the market. The appointment will be made in the coming days.

"Barring a last-minute change, everything points to the government's chosen successor, Bruno Serra, becoming the Director of Monetary Policy." BC The candidate should be someone connected to the market. The name will be officially announced next week — Serra's term ends on Tuesday. Fernando Haddad e Roberto Campos Net "They got it right on this sensitive issue," he writes.

Brazil currently has the highest real interest rate in the world, at 13,75% per year (adjusted for inflation, 8%), as set by the Central Bank.

The interest rate is set by the board of directors of the Central Bank, whose president is Roberto Campos Neto, appointed by Jair Bolsonaro.

Economists like André Lara Resende argue that the basic interest rates in the economy are too high, since Brazilian inflation is not demand-driven.

With the appointment of the Central Bank's director of monetary policy, the Lula government is beginning to shift the balance of power within the institution.

This week, a video showed Fernando Haddad and Roberto Campos Neto in a friendly conversation at a G20 meeting in India.

Roberto Campos Neto had already shown that he would be willing to lower the temperature of the conflict with the federal government, after Lula publicly complained about the high taxes, which drain almost 50% of the Union's budget.

Campos Neto's term runs until 2024, guaranteed by a constitutional amendment approved by the National Congress during the Bolsonaro administration.