Ahead of policy decision, Lula allies request gag order on Central Bank chairman

Members of President Luiz Inácio Lula da Silva’s Workers’ Party — including its chairperson, Congresswoman Gleisi Hoffmann — on Wednesday filed a lawsuit requesting that Central Bank chairman Roberto Campos Neto be forbidden from making political statements.

Mr. Campos Neto has been a lightning rod for left-wing outrage since Lula took office in January 2023, as the president and other government officials have blamed high borrowing costs for blocking faster economic growth. They also accuse Mr. Campos Neto of having a hidden political agenda. 

As The Brazilian Report explained in the June 19 Brazil Daily newsletter, tensions between the government and the Central Bank chairman have reached new heights.

Lula bashed Mr. Campos Neto in a Tuesday radio interview, saying he is working “against the country.” The move came after the Central Bank head accepted honors at the São Paulo State Congress last week, an event during which Mr. Campos Neto defended more autonomy for the bank. He then dined with far-right Governor Tarcísio de Freitas — a potential challenger of Lula’s in 2026.

During the ceremony, Mr. Freitas showered Mr. Campos Neto with praise. On his side, the central banker said the state should be “minimum enough, but enough to induce development, generating predictability and credibility.” 

At the same event, Mr. Campos Neto said the Lula administration represents the first “true test” of the bank’s autonomy, enacted in 2021. He has publicly backed a bill to make the bank a public company, which would give it more financial independence.

“By not publicly disputing the news that he was signaling his intention to occupy the position of finance minister [in a possible Freitas administration] and that he would support a potential presidential candidate over two years before the election, it is clear that the respondent’s conduct is driven by private interests, in clear violation of the principles of morality and impartiality,” the lawsuit contends.

Mr. Campos Neto often makes public statements. He gave a live televised interview to the prestigious Roda Viva show in February 2023, soon after Lula took office, and was recently interviewed by CNN Brasil in late April. He has also spoken in hearings at the House and Senate and often speaks at events held by financial institutions.

The Central Bank did not immediately reply to a request for comment.

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