Brazil president Lula da Silva appointed deputy finance minister Gabriel Galipolo to the central bank’s board as monetary policy director, causing a selloff in local assets due to the perceived intensification of his campaign against high-interest rates. Consequently, the Brazilian real dropped 1.2% to 5.01 per USD as traders anticipated a potential shift in the monetary authority’s balance of power, expediting a monetary easing cycle. While Brazil’s annual inflation fell within the bank’s tolerance range at 4.16% in April, core inflation is accelerating.