Campos Neto says the government is on the right path, but asks for patience to lower interest rates

The president of the Central Bank, Roberto Campos Neto, said this Monday (12) that the government’s economic team is following the right path to control inflation and public spending on the imminence of voting on the new fiscal framework, scheduled for later this month June according to the rapporteur, senator Omar Aziz (PSD-AM).

According to him, the conditions to start a new cycle of decline in the Selic interest rate are forming, but that it is still necessary to be patient to reach the necessary.

“It’s not mechanical and I can’t even predict if it’s going to be, how it’s going to be, when it’s going to be. We think the environment has improved, future interest rates have already dropped, the exchange rate is moving in the right direction. Sometimes the anxiety timing one, two, three months, for those in the real sector, it is very important. But, for those on the other side, you have to think: if I sacrifice here, if I wait a little more or a little less, what will be the effect of the measure”, he questioned.

Campos Neto stated that the cycle of falling interest rates is not immediate and has a long duration of “three to four years”, and that it is necessary “to have a little patience, things are going in the right way”. “A positive scenario is opening, and part of the work is being done”, he concluded.

The current interest rate, at 13.75%, has been constantly criticized by the government since the beginning of the year. The Monetary Policy Committee (Copom) meets next week to discuss the direction of the Selic.