Bruno Serra leaves Central Bank Monetary Policy Directorate

“On behalf of the Central Bank, President Roberto Campos Neto thanks Director Bruno Fernandes for the relevant services rendered to the Central Bank and the Collegiate Board”, says the communiqué from the autarchy.

Fernandes’ dismissal, effective as of March 23, was published in today’s edition of Official Diary of the Union.

Now, it is up to President Luiz Inácio Lula da Silva to nominate the replacement. The chosen one must also go through a sabbath in the Senate.

The decision comes amid discussions about the basic interest rate, the Selic, and pressure from the federal government for its reduction. The BC’s directors and president are members of the Monetary Policy Committee (Copom), the body responsible for setting the Selic. Copom meets every 45 days and the next meeting is scheduled for May 2nd and 3rd.

Mandates

The Collegiate Board of the Central Bank is made up of the president and eight directors. Pursuant to Complementary Law No. 179/2021, which established the autonomy of the Central Bank, the mandates are fixed and last for four years, and may be renewed only once.

The terms of office of the president of the BC and of two directors begin on January 1 of the third year in office of the President of the Republic. Two directors take office on March 1 of the president’s first year, two on January 1 of the second year, and finally two on January 1 of the fourth year.

To adapt to the new law, in April 2021 former president Jair Bolsonaro appointed to the Collegiate Boardthat of BC: Fábio Kanczuk and João Manoel Pinho de Mello, who have already left office, with a mandate until 12/31/2021; Bruno Serra Fernandes and Paulo Sérgio Neves de Souza until 2/28/2023; Maurício Costa de Moura and Fernanda Magalhães Rumenos Saved until 12/31/2023; and, finally, the president Roberto Campos Neto and the directors Carolina de Assis Barros and Otávio Ribeiro Damaso, who will stay until 12/31/2024.

The Director of Inspection, Paulo Sérgio Neves de Souza, remains in the position as interim and intends to be reappointed. The decision rests with the federal government. If that happens, in that case he does not need to go through the Senate sabbath again.

Upon leaving office, in December 2021, the then Director of Economic Policy, Fábio Kanczuk, was replaced by economist Diogo Abry Guillen. João Manoel Pinho de Mello left the Financial System Organization and Resolution Board and, for his vacancy, economist Renato Dias de Brito Gomes was appointed.