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Brazil Central Bank Director Viana to Step Down by November

Brazil Central Bank Director Viana to Step Down by November

(Bloomberg) -- Brazil central bank Economic Policy Director Carlos Viana, one of the institution’s most visible board members, will step down between October and November in the second senior staff change under chief Roberto Campos Neto.

Brazil Central Bank Director Viana to Step Down by November

Campos Neto is actively seeking a replacement whose economic views dovetail with those of other directors, according to two officials with direct knowledge of the matter. The plan is for Viana’s substitute to be nominated and confirmed by the Senate in time to participate in the final monetary policy meeting of the year in December, said the people, who requested anonymity because the discussions aren’t public.

The central bank declined to comment for this story.

Viana is part of a board that won praise for taming inflation, restoring the central bank’s credibility and boosting its transparency. He has held his post since 2016, regularly meeting with investors and also speaking to the press. At one point, Economy Minister Paulo Guedes considered him as an option to head the monetary authority. When Campos Neto was nominated last year to replace former bank President Ilan Goldfajn, Viana said he would remain in his post “for a considerable period.”

Viana’s departure follows that of International Affairs Director Tiago Berriel earlier this year. It also comes as the central bank prepares to start lowering rates to help buttress waning activity. The bank has held the benchmark Selic at an all-time low of 6.5% for over a year. Still, analysts in its weekly economist survey expect the monetary authority to cut rates by one percentage point this year.

Financial market bets for easing got a significant boost on Wednesday, when the lower house floor backed the government’s pension reform in a first vote. The central bank has repeatedly indicated it can lower borrowing costs if economic reforms including the pension overhaul advance in Congress

To contact the reporters on this story: Rachel Gamarski in Brasilia at rgamarski@bloomberg.net;Mario Sergio Lima in Brasilia Newsroom at mlima11@bloomberg.net

To contact the editors responsible for this story: Walter Brandimarte at wbrandimarte@bloomberg.net, ;Juan Pablo Spinetto at jspinetto@bloomberg.net, Matthew Malinowski

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