‘Nobody can take this interest anymore’, says Haddad – 06/29/2023 – Market

The Minister of Finance, Fernando Haddad, returned to defend this Thursday (29) the beginning of the reduction of interest rates by the BC (Central Bank).

“No one can take this interest anymore”, said the minister during live on the influencer Nath Finance’s Instagram channel. The transmission also had the participation of the first lady Rosângela da Silva, Janja, and served to answer questions about the Desenrola Brasil program.

Haddad also said that the measures adopted by the government over the first half of the year will allow the Central Bank to reduce interest rates and boost the debt renegotiation program.

“This semester we completed a cycle of measures that will guarantee that we have a lower interest rate and this will boost the development”, he said.

According to the head of the Treasury, the lower the interest rate, the lower the total amount to be paid by people who renegotiate their debts through the program. “The lower the interest rate, the better for the government, because more people can finance from what was deducted [no programa],” Haddad said.

Five of the main banks announced this week their participation in Desenrola Brasil.
Adherence by debtors should begin in September, according to the Ministry of Finance.

To enter the program, creditors have until July 27 to withdraw the names of people with debts of up to R$ 100. However, the withdrawal of the name does not represent debt forgiveness. It needs to be paid by the debtor through Desenrola Brasil. It is estimated that 1.4 million people benefit from the measure.

Haddad also pointed out that around 900,000 jobs were created in 2023, and that people’s income recovery, either because they got a job or through social programs, will be positively impacted by the prospect of falling interest rates.

This Thursday, the CMN (National Monetary Council) kept unchanged the 3% inflation target to be pursued in the coming years, which tends to contribute to the reduction in inflation expectations of financial agents, paving the way for the beginning of the cycle of interest rate cut.

The BC signaled that monetary easing could begin at the August meeting of the Copom (Monetary Policy Committee).