Lula again criticizes the Central Bank’s decision on the interest rate – 06/22/2023 – Market

President Luiz Inácio Lula da Silva (PT) once again criticized the Central Bank’s decision on the interest rate, maintained at 13.75% by the Copom (Monetary Policy Committee) this Wednesday (21).

In a press conference held this morning (22) in Rome, before traveling from Italy to France, the PT said that BC president Roberto Campos Neto is playing against the Brazilian economy and that he should be charged by the Senate, which has power to endorse a change in command of the institution.

“I think this citizen plays against the Brazilian economy. There is no acceptable explanation for the interest rate to be at 13.75%. We do not have demand inflation in Brazil,” said Lula.

“I have demanded from senators because they were the ones who put this citizen there. Senators have to analyze whether he is fulfilling what he has to fulfill. By law, he has to take care of inflation, economic growth and job creation. So, it has to be charged,” he said.

The 2021 Central Bank Autonomy Law establishes fixed mandates for the president of the BC and its directors, with a four-year mandate, with the right to reappointment. Appointed by his predecessor Jair Bolsonaro, Campos Neto may remain in office until December 2024.

“When the president appointed the president of the Central Bank, it was the president who was held accountable. Not now. The president cannot do anything. The Senate is responsible for holding him accountable,” added Lula.

The PT also said that this is not a fight between the government and the Central Bank, but a dissatisfaction on the part of Brazilian society and mentioned entities such as the CNI (National Confederation of Industries) and Fiesp (Federation of Industries of São Paulo), in addition to large retail groups and small and medium-sized entrepreneurs.

“What is happening in Brazil is irrational. You have an interest rate of 13.75% with inflation of 5%, that is, every time you reduce inflation by half a point, you increase the real interest rate in the country. It is not possible for anyone to borrow money to pay 14% a year, sometimes 18% a year.”