Haddad Puts Forward Guilherme Mello and Tiago Cavalcanti for Brazil’s Central Bank Board

Overview

• Fernando Haddad said he proposed Guilherme Mello and Tiago Cavalcanti for Central Bank director posts, with formal nominations still awaiting Lula’s decision.
• Mello is being suggested for the Economic Policy portfolio and, if confirmed, would join the Copom that sets the Selic.
• Market participants cited in reports view Mello as heterodox and likely more expansionary, yet still expect rate cuts to begin in March under Gabriel Galípolo’s stewardship.
• Cavalcanti, a University of Cambridge professor trained at UFPE and the University of Illinois, was suggested for the Financial System and Resolution seat vacated by Renato Gomes.
• The nominees must pass Senate CAE hearings and a plenary vote for terms running to December 2029, and Poder360 reported the Central Bank president was not consulted on Mello’s indication.