The nomination of Gabriel Galípolo, an ally of President Lula, as the next head of Brazil’s central bank has raised concerns about the politicisation of monetary policy (and a dovish tilt). But Galípolo has given very hawkish comments in recent media comments, fuelling a debate about whether Copom will hike rates next month. Our sense is that it won’t, particularly if (as we expect) the Q2 GDP figures next week show a modest slowdown. Elsewhere, Mexican President-elect Sheinbaum’s choice for the next Pemex CEO has been met with mixed reviews. But the key point is that Pemex’s debt load will continue to prove problematic, and challenge the government’s efforts to improve the fiscal position.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services