Brazil's Bolsonaro signs central bank autonomy bill into law

Brazilian President Jair Bolsonaro on Feb. 24 signed a bill to boost the central bank's autonomy by establishing fixed four-year terms for policymakers that will not be concurrent with the country's presidential election cycle, Reuters reported.

The law, which was approved by Brazil's lower house earlier in February, does not impact how Banco Central do Brasil conducts monetary policy but it does remove the central bank's governor from the president's cabinet of ministers.

The legislation further states that the central bank's secondary objectives include guaranteeing financial system stability, minimizing fluctuations in the economic cycle and encouraging full employment.