Brazil Senate committee delays again central bank financial autonomy vote

A Brazilian Senate committee on Wednesday has once again postponed a vote on a constitutional amendment that would grant the central bank full financial autonomy. The proposal, backed by conservative lawmakers and opposed by President Luiz Inacio Lula da Silva, aims to further insulate the bank from government interference.

The vote had already been postponed in July and the proposal’s sponsor, Senator Plinio Valerio, told repoters on Wednesday that the government had not approached him in the meantime to discuss the text.

While Brazil granted the central bank operational independence in 2021, financial autonomy would give the bank complete control over its budget. This move is seen as a crucial step in establishing a more independent monetary policy.

The ongoing political battle over the central bank’s role highlights the complexities of economic policymaking in Brazil.

Attribution: Reuters