Brazil's Senate Postpones Vote on Central Bank Financial Autonomy

Brazil's Senate Constitution and Justice Committee has delayed voting on a proposed constitutional amendment to grant the central bank financial autonomy. While conservative lawmakers support the move, President Luiz Inacio Lula da Silva's government opposes it. Debate is expected to resume in August, with considerations around the bank's independence and funding for the Proagro program.

Brazil's Senate Constitution and Justice Committee has postponed a vote on a constitutional amendment proposal aimed at granting financial autonomy to the central bank. Sponsored by conservative lawmakers, the proposal faces opposition from President Luiz Inacio Lula da Silva's government.

Committee President Senator Davi Alcolumbre announced that the debate would resume in August, following a request from the government's leader in the Upper House, Senator Jaques Wagner. Congress previously granted the central bank operational autonomy in 2021, which separated the governor's term from that of the Brazilian president. Financial autonomy would provide the bank with full control over its budget, affecting salaries and investments.

Earlier, the government proposed amendments to the Senate's sponsor, suggesting that the central bank should fund the rural insurance program Proagro under the new financial autonomy status. The government clarified that the central bank's expenditures would not impact the government's primary budget. Senator Plinio Valerio, the proposal's sponsor, indicated a willingness to continue working towards an agreement.

(With inputs from agencies.)