Brazil High Court Puts Off Central Bank Decision Until Thursday
Brazil’s Supreme Court to Rule on Central Bank Autonomy Law
(Bloomberg) -- Brazil’s Supreme Court delayed a ruling on the constitutionality of a law granting the central bank its long-sought formal autonomy, a key piece of legislation considered by investors as a victory for monetary policy making in Latin America’s largest economy.
The justices are discussing a case brought to the court by two opposition parties that claim the original proposal should have been introduced by the nation’s president, and not by lawmakers as it was. Two of them had voted -- one against and the other for upholding the law -- when chief Justice Luiz Fux adjourned the session, saying it will resume Thursday.
“Congress has made a legitimate choice and the judiciary has to let political decisions be taken by the legislature,” Justice Luis Roberto Barroso, one of those who voted, said during an event hosted by XP Investimentos earlier on Wednesday.
While the majority of the justices appear likely to confirm that the law is constitutional, the court is taking up the issue at a time when President Jair Bolsonaro is growing increasingly agitated over steep price increases that are contributing to a record drop in his popularity. Behind closed doors, he’s also expressed his deep displeasure about remarks made by central bank chief Roberto Campos Neto, linking an increase in inflation expectations to political infighting.
Political noise has been growing more than a year ahead of Brazil’s general elections as Bolsonaro clashes with electoral authorities and the top court over his unsubstantiated claims of fraud in the country’s electronic voting system.
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