Campos Neto is on Bolsonaro’s side and inflation target is unachievable, says Gleisi – 09/02/2023 – Market

The national president of the PT, Gleisi Hoffmann (PR), said that the president of the Central Bank, Roberto Campos Neto, is on the side of former president Jair Bolsonaro (PL) and defended that monetary policy obey the line defended by president Luiz Inácio Lula da Silva (PT).

“The president of the Central Bank declared his vote for Bolsonaro. The president of the Central Bank was in a group of Bolsonaro ministers until recently. So he has a side. Bolsonaro’s side. He was appointed by him. He did not show his autonomy, its political independence, due to these facts. When the bank decides to keep rates at current levels, it plays against Brazil”, said Gleisi in an interview with Sheet.

In recent days, Lula has been harshly criticizing Campos Neto. He said this week that the country’s current basic interest rate, the Selic, is a disgrace. “There is no justification for the interest rate to be at 13.50% [ela está na verdade em 13,75%]. Just look at the letter from the Copom for us to know that this interest rate increase is shameful,” said Lula.

He has also classified the autonomy of the Central Bank as “nonsense” and called Campos Neto “that citizen”.

Gleisi defends that, in the midst of pressure from Lula, Campos Neto adapts.

“President Lula is president of Brazil. He has the right and duty to speak on all subjects. He cannot be held back from that. We, as a party, believe that the policy that is being implemented is wrong, that this monetary policy has to be changed I think the National Monetary Council has to meet, it has to reorient the goals. And the Central Bank has to comply”, stated the president of the PT.

According to her, the discussion raised at this moment by the party and by Lula is not about the autonomy of the Central Bank and the mandate of the body’s members – despite the PT having voted against the BC independence project.

“We are discussing the implementation of a policy that is not the winning policy at the polls. Bolsonaro’s monetary policy was defeated. Lula won”, declared Gleisi.

Questioned whether Campos Neto’s decisions are taken in such a way as to deliberately harm Lula’s political project, the petista replied: “I can only understand that it is a political decision, because it does not find support in the country’s economic reality. It is a goal of unrealistic inflation”.

The issue entered the radar because Lula publicly criticized the targets set for the coming years —the targets are 3.25% in 2023 and 3% in 2024 and 2025, with tolerance margins of 1.5 percentage points, more or less.

In Lula’s view, the reduction in interest rates is necessary for the country to present higher economic growth and, with that, more openings for new jobs.

Therefore, the PT wants to expose the effects that, in the party’s view, are generated by the decisions of the Central Bank.

“The population has to know what is happening in the country, because otherwise it will be in the lap of the president”, said Gleisi.