Government, central bank have been at odds over some regulatory issues in recent years
Better cooperation will improve 39;tone39; of relationship, source says
Central bank39;s autonomy law has led to policy coordination challenges

BRASILIA, Oct 17 Reuters Brazil39;s government is preparing to cooperate more closely with the central bank on regulatory issues like cryptocurrencies and meal vouchers next year when the bank gets new leadership, following occasional differences over policy on such matters.

Incoming central bank chief Gabriel Galipolo, whose term starts in January following his appointment by President Luiz Inacio Lula da Silva, has delivered a hawkish message on monetary policy, showing he is not shy about hiking interest rates despite Lula39;s repeated demands for lower borrowing costs.

However, the two are likely to find more common ground on regulatory matters, where the central bank has sometimes been at loggerheads with the Finance Ministry in recent years.

Three Finance Ministry officials described on condition of anonymity a series of frustrated discussions with the central bank on matters ranging from regulation of crypto assets to allowing global trading platforms to list Brazilian public debt.

Two of the ministry sources said collaboration had suffered as the central bank became more withdrawn from policy discussions since gaining formal autonomy under a 2021 law.

The central bank confused autonomy with the idea that it wasn39;t a…