Deputy prosecutor says monetary policy is liberal – 06/27/2023 – Panel SA

The deputy attorney general of the Public Ministry of Accounts Lucas Rocha Furtado, who works with the TCU (Union Court of Accounts), released a document this Tuesday (27) in which he criticizes the interest rate policy of the Monetary Policy Committee (Copom).

“Monetary policy cannot be transformed into a libertarian policy,” he said. “The difference between medicine and poison is the dose. Due to an excess of discretion, interest rates at high levels can kill the patient, which in this case is Brazil.”

Furtado, who calls the document a “critical draft”, says he has made representations to the TCU about Copom’s performance.

“It is necessary to discuss the model, analyze the coordination of monetary and fiscal policies aiming at the harmony of Brazilian economic policy”, he wrote.

The deputy prosecutor defends the action of the National Congress to define a new dynamic for the financial system, more aligned with the national interest, according to him.

“I am somewhat concerned about the limits of action of this Committee. In order for the monetary policy to achieve its objectives efficiently, the BC needs to communicate in a clear and transparent manner, but this is not what I see in the Copom minutes with vague terms and permissive terms of varied interpretations”, said Furtado.

In his statement, he also mentions that the current president of the Central Bank, Roberto Campos Neto, is part of an ongoing process at the TCU that investigates an alleged accounting inconsistency of R$ 1 trillion in the balance sheet of the autarchy in 2019.

“Although the contradictory exists, there are doubts about the assertions of the president of the municipality’s decision-making”, he wrote.

As Panel SA reported, government allies are considering using this process to try to impeach Campos Neto in the Senate. However, given the analysis by the TCU technical area and ministers involved in the discussions, the chances are slim.

With Diego Felix

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