"Lula-PT-ism has become corrupt and corrupting, and it created an opposing force that is now the biggest force in Brazil".
Lula is now serving 12 years, which led the courts to bar his presidential run.
For voters, Bolsonaro was a shift from the norm.
At 4.53 percent, inflation is now near the middle of the bank's target range of 2.5 to 6.5 percent, and Sunday's election win by debt hawk Bolsonaro further bolstered the argument to keep the rate on hold.
Trump said he had an "excellent call" congratulating Bolsonaro and tweeted about their plans to "work closely together on trade, military and everything else!"
Bolsonaro's rhetoric has proved beneficial to certain sectors.
"They always accuse others of being what they are themselves", he said.
The fiery lawmaker's rise has been propelled by rejection of the leftist PT that ran Brazil for 13 of the last 15 years and was ousted two years ago in the midst of a deep recession and political graft scandal.
Guedes, who is well-liked by the markets, will head it.More news: Egypt: Deadly attack on bus headed to Coptic Christian monastery
Bolsonaro, who has expressed admiration for dictators including Chile's Augusto Pinochet, claimed many Brazilians now believed Brazil's military regime "wasn't a dictatorship as the left has always preached".
The former army captain, who won 55 percent of the vote in Sunday's second round, has a long history of provocative remarks that might even make Trump blush, from telling a leftist politician she wasn't "worth raping" to saying he would rather his son die than be gay.
Bolsonaro pledged not to hire anyone tainted by corruption charges.
With Bolsonaro like Trump holding the global body in low esteem, it is unlikely he will prioritize the Security Council, Velasco said. "He has little experience if at all with macroeconomic issues of the size and importance that Brazil faces". The Sao Paulo stock market closed up 3.69% on the news.
Brazil's Industrial National Confederation already released a statement criticizing the decision.
Bolsonaro, who takes office January 1, has promised to pull Latin America's largest nation out of the Paris climate accord, join the handful of countries that have moved their embassies in Israel from Tel Aviv to Jerusalem and take a hard line against President Nicolas Maduro in neighboring Venezuela.
May Boeve, executive director at climate NGO 350.org, warned that a Bolsonaro presidency posed "a real threat to human rights at home and a risk to the momentum for climate action overseas". "Yes, I'm homophobic - and very proud of it", he once said.
The Globo newspaper, in a separate article citing unnamed sources close to the judge, reported on Tuesday that Moro was weighing Bolsonaro's offer, feeling that he could reassure citizens concerned the president-elect will not govern democratically.