Lula says that BC should have reduced interest rates ‘three meetings ago’: ‘Let’s see what will happen’

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President Luiz Inácio Lula da Silva said this Wednesday (2) that he expects the Monetary Policy Committee (Copom) of the Central Bank to reduce, this Wednesday, the economy’s basic interest rate – currently at 13.75% per year. . The Copom has been meeting since this Tuesday (1st) to define, among other things, the level of the Selic Rate in the coming weeks. The result should be announced at the end of the afternoon, and the financial market expects a reduction of 0.25 or 0.5 percentage points. “We hope that today the Copom takes the decision that it should have taken three meetings ago to reduce the interest rate, because there is no explanation. Let’s see what will happen,” declared Lula in a cafe with foreign correspondents. Lula was questioned by journalists about expectations for the Copom result – and, in response, he returned to attack the president of the Central Bank, Roberto Campos Neto, appointed by Bolsonaro and with a mandate until the end of 2024. a public battle with Campos Neto. Lula and ministers are pressing for a reduction in interest rates to stimulate the economy and job creation. Meanwhile, the Central Bank treats the matter with caution and keeps interest rates high, indicating a risk of uncontrolled inflation. “When inflation falls and interest rates do not, it means that interest rates rise and Brazil now has the highest real interest rate in the world without any explanation,” Lula said this Tuesday morning. “It turns out that this guy who is at the Central Bank, it seems to me that he, I don’t know what he understands, but he doesn’t understand Brazil and he doesn’t understand the people. So there’s a logic, I don’t know who he’s serving, I don’t know, honestly I don’t know. In the interests of Brazil, it’s not,” said Lula. “We’re going to keep growing anyway. That’s going to be the good surprise. We’re going to keep growing anyway. That’s why I’m calm”, he added.

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