On the day of the Copom meeting, Haddad says that it is possible to lower interest rates and that nominations to the BC board will come out this week

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BC’s Copom meets this Tuesday and Wednesday. Forecast by most bank economists is that the rate will remain at 13.75% per annum, the highest level in six and a half years. Finance Minister Fernando Haddad said this Tuesday (2) that it would be possible for the Central Bank’s Monetary Policy Committee (Copom) to start the process of cutting basic interest rates in the economy this week. Questioned by journalists if it would be possible to lower the Selic rate, he replied: “it can, right”. The Copom meeting, a collegiate body formed by the institution’s directors and president, began this Tuesday. The meeting, which will take place over two days, will last until the night of this Wednesday (3), when the decision on the basic interest rate for the Brazilian economy will be announced. The projection of financial market economists is for a new maintenance of the Selic rate at 13.75% per year, the highest level in six and a half years. It also represents the highest real rate in the world. President Luiz Inácio Lula da Silva continues to launch strong criticisms of the level of the economy’s basic rate, due to the impact on the level of activity and employment. Headed by Roberto Campos Neto, appointed by former President Jair Bolsonaro, the Central Bank has operational autonomy to define monetary policy with the aim of controlling inflation.

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