Lula returns to demand interest rate cuts and says that Campos Neto needs to explain himself to the people and the Senate

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Defined by the Monetary Policy Committee (Copom), of the Central Bank, the rate is at 13.75% per year – the highest level in six and a half years. President Lula returned this Monday (19) to demand the reduction of interest rates in Brazil. He also made a charge to the president of the Central Bank, Roberto Campos Neto, who, for the PT, needs to explain to the people and the Senate why the institution does not reduce the Selic rate. Defined by the BC’s Monetary Policy Committee (Copom), the rate is at 13.75% per year – the highest level in six and a half years. “Only the interest rate needs to go down, because there is no explanation either. The president of the Central Bank needs to explain, not to me, because I already know why it doesn’t go down, but to the Brazilian people and the Senate, why it doesn’t go down [a taxa]”, he said. This Monday’s speech, made live on Lula’s social networks, is yet another declaration by the PT against Campos Neto. Since the beginning of the year, Lula and members of the government and the PT have been pressing for cuts in The Monetary Policy Committee (Copom) meets this week to decide on interest rates. future interest rates have had a significant drop. This means that the market is giving credibility to what is being done, which makes room for monetary policy action ahead”, said Campos Neto. However, Campos Neto said that the Central Bank needs to act with “parsimony” and that interest cannot be lowered artificially, under the risk of not achieving the desired result. Financial market specialists predict that, at this week’s meeting, the interest rate should be maintained at 13.75%. August, start to retreat – moving to 13.50% per annum, a cut of 0.25 percentage points. has reacted well to the government’s fiscal framework, with future interest rates falling and the exchange rate “going in the right direction.” The framework should be voted on this week in the Senate.

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