Haddad wants BC to ‘return’ after government ‘effort’ – 07/20/2023 – Market

The Minister of Finance, Fernando Haddad (PT), again defended this Thursday (20) the reduction of the basic interest rate (Selic) as a way to stimulate the Brazilian economy.

When asked about expectations for the next Copom (Monetary Policy Committee) meeting, scheduled for August 1st and 2nd, Haddad said that he expects “a return” from the BC (Central Bank) collegiate due to the “effort made” in the economic area.

The Selic is at 13.75% per annum. Allies of President Luiz Inacio Lula da Silva (PT) have been pressing the Central Bank for a drop in interest rates.

“The deliveries that were made throughout the year are unprecedented, what Congress worked on, what the Judiciary worked on to help put the house in order, totally messed up in 2022. I don’t remember, since I’ve been following the economy, such a productive semester”, said Haddad.

“What is expected is that there is a reaction compatible [do BC]. From the point of view of the monetary authority, a return on the efforts made is expected. Evidently, from my point of view, we have had room to move in the same direction for some time,” he added.

The declaration took place in an interview with journalists in Rio de Janeiro, where the minister participated in the launch of an agenda with proposals for financial reforms for the 2023-2024 cycle.

This agenda, according to the government, seeks to promote regulatory improvements and increase the efficiency of financial, capital, insurance, capitalization and open private pension markets. These are microeconomic proposals that are being discussed with representatives of the respective sectors.

In the interview, Haddad said that the Tax Reform is the “mother” of all reforms and also sought to defend other government projects, such as the fiscal framework.

For the minister, the economy has the opportunity to “take off” if the country knows how to do what has to be done.

“Economics is a lot like Formula 1: you have to get the car right,” he said. “It’s no use moving forward. You have to move faster than the others”.