After Lula’s criticism, deputies say there is no ‘environment’ to review BC autonomy

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The president has attacked the body’s autonomy and criticized the basic interest rate, currently at 13.75%. For deputies, monetary policy needs to be debated, but change would be a ‘setback’. Election for president and other positions on the Board of Directors of the Chamber Bruno Spada/Chamber of Deputies The criticisms of the President of the Republic, Luiz Inácio Lula da Silva, to the Central Bank have generated clashes and questions in Congress about the autonomy of the institution. For parliamentarians, there is no “environment” to change the rules that govern the body. BC independence was established by law in 2021. The norm was approved by Congress and sanctioned by then President Jair Bolsonaro. The text establishes a four-year mandate for the president of the BC and aims to shield the body from party-political pressure. In recent days, Lula has been criticizing the BC’s actions, mainly in relation to the setting and maintenance of the interest rate at 13.75%, by the Monetary Policy Committee (Copom). The president also went so far as to say that the independence of the Central Bank is “nonsense”. At the inauguration ceremony of Aloizio Mercadante this Monday (6), Lula attacked the Monetary Policy Committee (Copom) of the Central Bank, which decides on interest rates. At the time, he said that Brazil has a “culture” of high interest rates, and that the interest rate level and the BC statement were a “shame”. ‘Retrogression’ André Fufuca (PP-MA), leader of the PP in the Chamber, the fourth largest bench in the House, said that the party will not endorse a possible revision of the BC’s autonomy. “The PP will not support this retreat,” he said. The leader of the MDB, Isnaldo Bulhões (MDB-AL), said that Lula’s statements do not cause concern. But he pondered: “I think that today there is no environment to review [a autonomia]”. The leader of the PDT, André Figueiredo (PDT-CE), stated that any change needs to be debated by congressmen. “A discussion on this issue is essential for us to have an economic and monetary policy in line with the policy of resuming the growth of our country. From this discussion we can evolve to several paths, including the review of autonomy “, said the pedetista. According to columnist Valdo Cruz, the PT wing of the government supports the president, but the rest of the allied base is against – as well as Republican parliamentarians and the PP, parties with large benches in the Chamber. Session The issue was much debated this Tuesday (7), during the Chamber session. Read below the manifestations of some deputies: Lindbergh Farias (PT-RJ): “We have , today, the highest basic interest rate in the world, the Selic rate, which is at 13.75%. It’s the tallest in the world! And that has a huge impact on the economy. We’ve got the handbrake on! We cannot accept that a President of the Central Bank puts the brakes on the economy”. Mauricio Marcon (Podemos-RS): “We have seen, in recent days in Brazil, a president who attacks the President of the Central Bank day after day, wanting to blame him for misfortunes from the country[…]. Brazil now has the best president of the Central Bank in the world. Maybe that’s why Lula wants to overthrow him.” Mauro Benevides (PDT-CE): “There is no other country that has this interest rate. Compared to its established value and the level of projected inflation, there is no country in the world that has a real interest rate similar to the one charged here in Brazil”. Marcel Van Hattem (Novo-RS): “Lula is being undemocratic by attacking this parliament day after day, with his whimpering against the autonomy of the Central Bank, and worse, to defend what Dilma and he did in the past. He wants to interfere in the Copom’s interest rate policy, causing inflation to rise and irresponsibility.” Guilherme Boulos (PSOL-SP):” This Central Bank independence is a farce. How to talk about an independent Central Bank with Mr. Campos Neto as president of the institution, who is an infiltrator, who until the other day was in a WhatsApp group of Bolsonaro ministers and who wants to position himself as independent? What is the exemption that exists? It is sabotaging Brazilian economic growth and boycotting the drop in interest rates, which is essential to recover jobs and income”. . The enemy is Roberto Campos Neto. The enemy is Central Bank independence. We have to continue defending the independence of the Central Bank. We know why they want to tarnish Roberto Campos Neto’s image and destroy the independence of the Central Bank. It’s to put an orthodox PT in there and then make a single Central Bank, with all the friends of Latin America. That’s what they want.” Giovani Cherini (PL-RS): “They’re going to govern! Stop making speeches! Say what you’re going to do in the economy! Stop criticizing the Central Bank! Stop saying that hunger and misery can be fought with more misery.”

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