Campos Neto renders ‘disservice’, says minister about Selic – 03/22/2023 – Market

Minister Rui Costa (Casa Civil) said this Wednesday (22) that the president of the Central Bank, Roberto Campos Neto, is doing a “disservice” by referring to the Selic (basic interest rate) in Brazil, which is in level of 13.75%.

The decision of the BC’s Copom (Monetary Policy Committee) on the interest rate will be announced this Wednesday (22).

Minister Fernando Haddad (Finance) even said that he wanted to send the new fiscal framework design before the meeting, which began this Tuesday (21), so that the bank would reduce the interest rate, but the announcement was postponed. For the Minister of the Civil House, however, Campos Neto does not need to wait for the announcement of the new fiscal rule to lower the interest rate.

“He doesn’t need a new fiscal milestone announcement to review that. I’m sorry, he doesn’t.”

“And I’m sorry about the Copom meeting, I will insist: what the president of the Central Bank is doing is a disservice to the Brazilian nation. He raised the interest rate to 13.75% when inflation was around 10%. Today, inflation is a little above 5%. So, what justifies him taking the same dose of medicine that he had with 10% inflation?”, said Costa.