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Brazil Finance Chief Backs Ally for Central Bank Seat
31 Jan
Summary
- Finance Minister Fernando Haddad nominated Guilherme Mello for a central bank board seat.
- Mello, an economist, has advocated for interest rate reductions.
- Two board seats have been vacant since the end of 2025.
Finance Minister Fernando Haddad has put forward Guilherme Mello, secretary of economic policy, for a vacant position on Brazil's central bank board. Mello, known for his leftist economic views, has supported Haddad's push to lower the benchmark interest rate, which currently stands at 15%.
The central bank's nine-member board has had two vacancies since the terms of former directors Diogo Guillen and Renato Gomes concluded at the end of 2025. Policymakers recently held the benchmark Selic steady for the fifth consecutive meeting, but signaled potential rate cuts in March. The vacancies meant only seven members participated in the latest decision.
Mello, 42, is an advocate for state intervention to boost production and address inflation. He has served in his current role since President Lula's return to the presidency in 2023 and previously advised Haddad's campaigns. It remains uncertain if President Lula will approve Haddad's recommendation for the board.
