Campos Neto says that autonomous BC serves to separate monetary guidelines from the political sphere

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Monetary control and politics have ‘different plans and interests’. President of the Central Bank, which has been the target of criticism from Lula, also stated that the institution’s autonomy reduces the cost of interest. President of the Central Bank defends the autonomy of the institution The president of the Central Bank, Roberto Campos Neto, said this Tuesday (7), in a lecture in the United States, that the institution’s autonomy serves to separate monetary guidelines from the political sphere. Campos Neto has been criticized in recent days by the President of the Republic, Luiz Inácio Lula da Silva, who claims that the economy’s basic interest rate should be reduced. At its last meeting, last week, the Central Bank’s Monetary Policy Committee (Copom) maintained the Selic rate at 13.75% per annum. Unlike his other mandates, Lula cannot now change the president of the BC. The BC’s autonomy, defended by the Jair Bolsonaro government, was approved by Congress in 2021. “The main reason in the case of the Central Bank’s autonomy is to disconnect the monetary policy cycle from the political cycle because they have different plans and interests. And the more whatever you are, the more effective you are and the less the country will pay in terms of the cost of inefficiency in monetary policy”, said Campos Neto.

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