Galípolo's management at the Central Bank hasn't started yet, says Paulo Nogueira.

247 - In an interview with journalist Leonardo Attuch, editor of  TV 247Economist Paulo Nogueira Batista Júnior harshly criticized the management of the Central Bank under Gabriel Galípolo. According to him, so far the new president's administration has not shown significant changes in relation to the legacy of Roberto Campos Neto.

Galípolo follows Campos Neto's line.

Paulo Nogueira Batista Jr. was direct in his assessment of the new president of the Central Bank's performance:

 "It's difficult to assess Gabriel Galípolo's administration because it hasn't even started yet. It's as if Roberto Campos' administration is still in effect. There haven't been any appreciable changes."

According to the economist, maintaining a policy of high interest rates not only stifles the economy but could also compromise the government's political objectives.

 "This high interest rate policy is almost irrational. I only don't say it's irrational because there are vested interests behind it. But it's been disappointing."

Risk to the economy and to Lula's reelection.

Nogueira Batista Jr. warned that the Central Bank's conservative stance could have electoral consequences for President Lula in 2026.

 "High interest rates contribute to the slowdown, unbalance public finances, and disrupt income distribution. Nothing is worse for a candidate seeking reelection than the perception that economic policy is burying economic activity and employment."

According to him, Lula should be paying attention:

 "Let's not assume that reelection is guaranteed. It's not. If this policy isn't made more flexible soon, it could seriously hinder things."

Haddad, Congress, and the role of the government.

The economist also assessed the performance of the Finance Minister, Fernando Haddad, highlighting his political skills but criticizing his attempt to please the market too much.

 "Haddad has substance, but he tried too hard to play the good guy. The government only started to react when he denounced Congress as an enemy of the people. And it worked."

For him, the lesson is clear: popular mobilization needs to go hand in hand with political coordination.

A paralyzed central bank amidst a country in motion.

Paulo Nogueira Batista Jr. concluded that, while Lula strengthens his international image and Brazil regains global prominence, the Central Bank seems stuck in the past.

"The Galípolo administration, so far, has been disappointing. It hasn't shown what it's capable of. It's urgent to break with this continuity of Roberto Campos's policies."

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