Lula seeks political support to treat BC as an opposition – 02/08/2023 – Bruno Boghossian

Lula summoned the political world to fight with the leadership of the Central Bank. In a meeting with allied parties, the PT argued that the president and Congress were elected by the people and, therefore, do not need to “ask for permission” to choose the economic policy that will be implemented by the government.

At the meeting, there were criticisms of the interest rate established by the bank under the command of Roberto Campos Neto. Lula’s idea was to appeal to the spirit of the political class and establish a commitment in favor of an economic agenda that stimulates growth.

The movement has all the appearance of a maneuver to consolidate an alliance that, in practice, throws the BC into opposition. Lula, by the way, does not hide that he considers Campos Neto a Bolsonarist. He highlights the fact that the head of the bank participated, until the other day, in a WhatsApp group of former ministers of the last government.

Deep down, the PT would even like to have parliamentary support to overthrow the head of the BC, but he also knows that the cost of this articulation would be high and would produce more turbulence in the economy. For now, the reasons for bringing allies into the ring seem to be different.

Everything indicates that Lula would like to show that the BC’s criticisms are echoed in Congress, despite the restrictions of many parties to the tone adopted by the president. In addition, it is undeniable that growth held back by interest rates is not of interest to centrão parties either.

According to this logic, the PT could expand political support for the banner of reducing interest rates and increase pressure on the Central Bank. On another front, he would seek support among parliamentarians to approve incentive measures that ease the cooling of the economy.

There are considerable risks along the way. Lula may see support for this agenda restricted to parties on the left, which would leave him far from a majority in Congress. In addition, the president should know that Campos Neto is also involved in politics and has friends at the top of the centrão.

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