Minister Padilha says that government does not discuss changes in BC autonomy

central bank

Minister Alexandre Padilha also denied that there was pressure on the mandates of the current Central Bank (BC) board.

Brasilia DF) – The Minister of the Institutional Relations Secretariat (SRI), Alexandre Padilha, said, this Wednesday (8), that the federal government is not discussing changes in the Central Bank (BC) autonomy law. He also denied that there was pressure on the mandates of the current board of the monetary authority.

In recent days, President Luiz Inacio Lula da Silva (PT) has been harshly criticizing the Central Bank and the basic interest rate, the Selic, which is at 13.75%.

“There is no government initiative to change the current Central Bank law and no pressure on any mandate of any director. The law clearly establishes which mandates will be fulfilled”,

said Minister Padilha to the press, after a meeting of the Coalition Political Council, at the Planalto Palace.

Commanded by President Lula, the meeting brought together leaders and presidents of parties from the allied base in Congress.

Autonomy

Sanctioned in 2021 by the then president, Jair Bolsonaro (PL), the autonomy of the BC was endorsed in the Chamber of Deputies and in the Federal Senate by the majority of deputies and senators. The agenda was, at the time, one of the priorities of the liberal-economic agenda of the then Minister of Economy, Paulo Guedes.

According to Padilha, Lula brings a debate on the need to reduce interest rates, which he also considers to be of interest to businessmen. “Everyone wants lower interest rates in the country, so that, more and more, businessmen can take credit, generate more jobs and, thus, accelerate the country’s growth”, he said.

“There is no heating, no boiling, no frying. What you have is a debate and a great effort. A debate that should be public in the country, with the aim of defining how to create an environment in the country that is increasingly conducive so that those who want to borrow, get credit, create jobs in the country can do so as quickly as possible”, he concluded.

Changes in the board

At the end of February, the mandates of two directors expire and, according to Padilha, the Minister of Finance, Fernando Haddad, conducts this debate from a technical point of view.

“President Lula, when he was president of the Republic for eight years, appointed as president of the Central Bank and directors of the Central Bank people who had the competence and capacity to combine, at all times, fiscal responsibility with socio-environmental responsibility and to make the instruments that the Central Bank has to meet the established goals”,

stressed Padilha.

The minister also highlighted the need for the BC law’s objectives to be “increasingly pursued by all.” He cited the promotion of full employment, the smoothing of economic fluctuations, the guarantee of economic stability and the efficiency of the financial system.

The presidential assistant also denied that the government had asked parliamentarians from the allied base to invite or summon the president of the BC, Roberto Campos Neto, to provide clarification on the interest rate.

“At no time did the government take any initiative for this, not least because the government has a dialogue with the Central Bank’s management as a whole, conversation at any time, at any time”, he said. “It is not the government’s role to do this,” he concluded.

*With information from Metrópoles

Read more:

Lula orders cuts in river and air traffic in the Yanomami area

Find out how to check forgotten money on the Central Bank website

Interest rates for families and companies rise, says Central Bank