Lula: It is an excrescence that the interest rate is 13.75% – 05/25/2023 – Market

President Luiz Inácio Lula da Silva (PT) once again criticized the current level of the basic interest rate, the Selic, during an event at Fiesp (Federation of Industries of the State of São Paulo) this Thursday (25). The petista also attacked the reactions of the financial market to his speeches about interest rates and the Central Bank.

“In this country where the financial market has taken over industry, a president of the Republic cannot even criticize the president of the Central Bank that he is influencing the economy,” said Lula.

“I want to say here within Fiesp: it is an outgrowth, these days, for the interest rate to be 13.75%”, he added.

Lula spoke of the interest rate damage to the credit market in Brazil, and stated that, for small businessmen to borrow today, it is like “signing a death certificate”.

The president also reaffirmed the role of public banks in times of crisis to inject money and “save the economy”.

According to Lula, during the 2008 financial crisis, while developed countries sank into a recession, Brazil was generating jobs thanks to the BNDES (National Bank for Economic and Social Development).

At the same event, the vice-president, Geraldo Alckmin (PSB), also took the opportunity to complain about the interest rate. “The exchange rate is good, interest rates have to fall. I was remembering this afternoon that in 2020 inflation was higher than today and the Selic rate was 2%.”

He pointed out that the current level of interest harms economic activity and said that the approval of the new fiscal framework makes room for an improvement in the scenario.

The Minister of Finance, Fernando Haddad, said that the Brazilian tax system, as it is designed today, is the great villain and blamed for low growth.

“For eight years [nos mandatos anteriores de Lula], we grew at an average of 4.2% compared to 2.5% of the world average. If we persevere and do not let minor disputes erode our ability to dialogue and deliver, with the Powers harmonized and the Treasury harmonized with the Central Bank, we will experience a very virtuous growth cycle in Brazil.”

WAVE TO AGRIBUSINESS

The president took advantage of his speech at the event to nod to agribusiness, a sector that has been critical of the tax reform advocated by the government. Lula stated that Brazil needs to continue exporting more and more grains and meat.

“It is important to know that we want the Brazilian industry to grow, but we also want our commodity exports to continue growing. We want our agribusiness to continue growing. And this does not hinder the industry”, he reinforced

The president pondered that the two sectors can grow together. “Especially because, for agribusiness to be more productive, it will have to buy more machines,” he said.

Lula criticized the contempt of some towards agribusiness, arguing that behind agricultural and livestock production there is a lot of investment.

Along with the president of the Senate, Rodrigo Pacheco (PSD-MG), Lula asked Congress to speed up voting on reforms and other economic matters so that all sectors can develop in the country. “We need everything. Pacheco, hurry up the votes because the train is blowing.”