Lula sets a constant target inflation regime and the target is 3%; Citing British Columbia, Gallipolo participates in the meeting | Julia Doilleby's blog

The system was called the “calendar year”, which analyzes inflation from January to December. It was decided to become a “continuous target” system, where it will be continuously analyzed whether the target is within what has been set, and whether inflation is within the set target.

President Lula's decree is scheduled to be issued on Wednesday (26) after the meeting of the Matrix Network of Parties, which is necessary, from a technical point of view on the part of the government, to give greater credibility to the 3% target.

Central Bank Monetary Policy Director Gabriel Galipolo, who is likely to be Campos Neto's replacement, went to Palacio do Planalto on Tuesday afternoon (25) to participate in the meeting to define the new inflation target system with Lula. In addition to the President, the meeting included Minister of Finance Fernando Haddad, Secretary of Economic Policy at the Ministry of Finance Guilherme Melo, Minister of Institutional Relations Alexandre Padilha, the former Minister of Planning and the former President of the Republic. Caixa Myriam Belchior.

Galipolo entered and exited through the front door of the palace.

Galipolo's trip to Planalto shows he remains close to Lula and is therefore the most sought-after BC leader, although the Labor MP has not handed over the gavel — Campos Neto, the current BC leader, has a mandate until December.

But the visit also opens a debate about his independence, and the following week he voted with central bank directors to maintain interest rates with the aim of showing himself independent of the executive branch.

President Lula on Tuesday held a meeting at Palacio do Planalto to identify issues related to the change in the country's inflation targeting system.

The decision to change the ongoing inflation target system is important because it also helps catapult Gabriel Gallipolo to the position of BC President as it is supported by the decision contained in the minutes of the Cobom meeting last week, which was approved by the Ministry of Finance. This was not an explicit endorsement, but rather an implicit endorsement. Thus, the government allows Galipolo to be freer to gain credibility.