Central Bank acted at the right time against inflation, says president of Mises

Expectations indicate that the Central Bank should start this Wednesday (2) an interest rate cut cycle. Whatever the reduction announced, it validates the strategy of the Brazilian Central Bank, the first to raise interest rates after the pandemic, while the world was betting on transitory inflation.

This assessment is made by the president of the Mises Brasil Institute, Hélio Beltrão. “We must congratulate the Central Bank for having acted at the right time”, he says.

This finding is relevant mainly due to the level of opposition to the monetary policy conducted by the president of the Central Bank, Roberto Campos Neto. Since the beginning of the government, President Luiz Inácio Lula da Silva (PT), ministers and supporters have not spared criticism of the BC’s work.

The president went so far as to say that Campos Neto “played against Brazil”. In Hélio Beltrão’s assessment, the criticism was a tactic by the government to elect a scapegoat for the poor performance of the economy that was emerging at the beginning of the year.