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Goldman Sachs on New BCB Directors

BRAZIL
  • Given the senior political role in the current government, Mr. Galípolo is perceived as a potential replacement of central bank president Roberto Campos Neto when his term ends at end-2024. Goldman Sachs see scope for a potential increase in communication noise in the near term.
  • Goldman Sachs would not be surprised to start to see split Copom decisions and diametrically opposed views within the Copom over what the proper policy stance should be. Furthermore, the perception that Mr. Galípolo will eventually replace Governor Campos Neto has the potential to generate some friction within the Copom.

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