Haddad celebrates Selic reduction and predicts growth cycle

The Minister of Finance, Fernando Haddad, celebrated this Wednesday (13) the decision of the Monetary Policy Committee (Copom) of the Central Bank (BC) that reduced the basic interest rate to 11.75% per year. After the decision, Haddad foresees a more sustainable growth cycle in the country. The Copom cut 0.5 percentage points in the Selic.

“This means that Brazilian investors can prepare for a more sustainable growth cycle, with low inflation, low unemployment, this is good news for Brazilian families,” he said. The minister avoided answering whether the cut made by the BC is ideal and pointed out that the faster monetary and fiscal policies converge, the better for the country.

“We will converge to where the Selic has to converge because inflation indicators demonstrate that economic policy is on the right path. A very restrictive monetary policy hinders revenue, an irresponsible fiscal policy compromises monetary policy. We have to walk together, the faster we converge the better”, she highlighted.

Haddad also said that he believes in the approval of the tax reform later this year. According to the minister, the proposal should be analyzed by the Chamber of Deputies this week and promulgated next week. He defended the promulgation of common points between the two Houses. “Whatever is not common to both Houses can be left for later… If there is anything pending, this can be discussed at another opportunity because the backbone and almost all of the details are agreed upon,” he said.