Deputy wants change in Copom and lights alert in the market – 07/11/2023 – Panel SA

Faria Lima brokerages started making phone calls to Brasília this week trying to understand if the bill that changes the composition of the Copom (Monetary Policy Committee) is for real or will serve as one more instrument of pressure for the Committee to reduce interest rates at the next meeting in August.

The movement began two days ago, after deputy Eduardo da Fonte (PP-PE) collected almost 400 signatures due to the urgency of the project – which will be analyzed on the return of the parliamentary recess, in August. All 68 PT deputies signed the request.

The Copom is the body responsible for setting the Selic, basic interest rate, every 45 days, with the aim of achieving the inflation target.

The initiative increases pressure on Roberto Campos Neto, who has been under constant criticism since Lula (PT) took office at the turn of the year. This Tuesday (11), the PT called the president of the Central Bank “stubborn and stubborn” and again asked for a drop in interest rates in the country.

Eduardo da Fonte explains that the Copom was established in 1996, through an administrative act by the Central Bank, violating the Constitution. In such cases, the approval of a supplementary law for the creation of the body would be necessary.

In the project, the deputy also proposes the reduction of Committee members, from nine to five. Currently, the Copom is made up of the president of the BC and its directors, however the project establishes that the ministers of Finance —who will be the chairman of the table—, of Planning, of Development, the president of the Central Bank and the secretary of the Treasury.

This is the concern of the market. The fear is that decisions regarding interest rate policy will no longer be taken based on reports from the technical area of ​​the Central Bank and will start to be guided by the government’s political sentiment.

“The project does not affect the Central Bank’s autonomy, but we need to regulate the Copom. Whether this regulation will be done as I suggested in the project, or if it will be done according to the current membership, it is up to Congress to define. No one has touched on this matter. [desde 1996]we found the flaw and now we need to correct it”, said Eduardo da Fonte.

With Diego Felix

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