Expensive money is “the fault of the government, which owes a lot”, says BC president

The president of the Central Bank, Roberto Campos Neto, said this Friday (12) that if the interest rate is high in Brazil, it is the fault of the government, which “spends a lot”. “We have to be careful not to have an inversion of values. If you, a businessman, are trying to get some money and it’s expensive, it’s not the BC’s fault, because it’s evil, it’s the government’s fault, which owes a lot” , he said in an interview with CNN.

He goes on to say that this is because “the government is competing with you for the money it has available to invest in projects. So, the main culprit for interest rates being high is that there is someone else competing for the same resources and paying more.” Campos Neto, then, concludes that if the government debt were lower, the cost of money would be cheaper for everyone.

Campos Neto has been criticized by President Luiz Inácio Lula da Silva (PT) and allies, such as the national president of the PT, Gleisi Hoffmann. Last week, in London, Lula stated that the president of the Central Bank “has a commitment” to the government of his predecessor, Jair Bolsonaro (PL), who nominated him for the position he currently occupies.

“He [Campos Neto] has no commitment to me. Who does he have an appointment with? With Brazil? It does not have. He is committed to the other government, which appointed him. This is important to be clear”, declared the president.

In this Friday’s interview, Campos Neto commented on his relationship with Lula. “I had a conversation with him [Lula], I’m available to talk to him, any day, any time, whenever. So, there is nothing that BC doesn’t want to talk about or doesn’t want to talk about. On the contrary, I try to arrange a meeting with as many government ministers as possible,” he said.