(Adds further comments after TV interview)
BRASILIA, May 9 (Reuters) - Brazil's executive secretary
of the Finance Ministry, Gabriel Galipolo - who is due to be
nominated for a key role at the country's central bank - said on
Tuesday he has good relations with central bank Governor Roberto
Campos Neto but does not always agree with him.
Speaking to reporters, Galipolo also said everyone wants
interest rates to be reduced.
"I am convinced that the entire board of the central bank
has no satisfaction whatsoever, neither professional nor
personal, in having higher interest rates," he added.
In a later interview to CNN Brasil, Galipolo drew attention
to the improvement in market prices in response to fiscal
efforts already made by the new government.
"The exchange rate has improved, the real has
appreciated, long interest rates have been systematically
falling, so all of this provides an easier scenario for the
central bank to analyze expectations and analyze market prices,
and to inaugurate a cycle of rate cuts," he said.
Asked about changes in the inflation target, he said
that all the debate he witnessed in the government on the
subject was never done "to have some kind of specific objective
in interest rates," but rather aimed at modernizing the
inflation target framework by examining global practices.
Finance Minister Fernando Haddad revealed on Monday that
Galipolo, the former CEO of investment bank Banco Fator, would
be nominated by President Luiz Inacio Lula da Silva as the
central bank director of monetary policy.
Galipolo argued that it is expected that nominees to the
central bank have some affinity with the current government, but
also stated that he has a "cordial dialogue" with the bank.
If approved by the Brazilian Senate, Galipolo will be
responsible for interest and exchange rate instruments at the
central bank, in addition to providing technical orientation on
the management of the country's international reserves.
(Reporting by Victor Borges; Editing by Leslie Adler, Sandra
Maler and Andrea Ricci)
