Senate approves invitation to hear Campos Neto – 06/27/2023 – Market

The government reinforced the pressure on the president of the Central Bank, Roberto Campos Neto, to cut interest rates in the country after the minutes of the Copom (Monetary Policy Committee) this Tuesday (27th) signaling a monetary relief in August.

President Lula (PT) started the day by criticizing the current level of the basic rate and once again attacked Campos Neto by commenting on the percentage charged on payroll deduction (credit modality with direct discount on the payroll).

“This interest could be cheaper, but there is a citizen of the Central Bank, we don’t know who put it there, which makes the interest be 13.75% [ao ano]”. Campos Neto was appointed by the government of Jair Bolsonaro (PL) and has a mandate until 2024.

Minister Simone Tebet (Planning), in turn, raised the tone against the BC by stating that she does not understand the discrepancy observed between the Copom communiqué, released at the time of the announcement of the decision on interest rates, and the minutes —released days later . She says that she would summon Campos Neto, if she were in the role of senator, to give explanations.

“The impression I have is not from now, it’s the third one, that the statement is made by one body and the minutes are minutes by another. There is the statement ‘hard’, the term they use, and the minutes, ‘soft’. to understand. Why stress Brazil, create unnecessary friction?”, questioned Tebet.

“Undressing myself here for two minutes as a minister and returning to the moment when I was a senator: in a case like this, without a doubt, I would summon the president of the Central Bank, but I don’t believe it will be necessary”, he added.

The Minister of Agriculture, Carlos Fávaro, also called for the drop in the rate and appealed to farmers to help with the pressure. Vice-president Geraldo Alckmin, who is also Minister of Industry, said that there is confidence in the cut. “There’s no reason anymore not to drop interest rates. So we’re very confident,” he said.

At the same time, the CAE (Economic Affairs Commission) of the Senate approved an invitation for Campos Neto to provide explanations, after one of the requests was presented by the leader of the government in Congress, Senator Randolfe Rodrigues (Rede-AP).

The Senate has been encouraged by President Luiz Inácio Lula da Silva (PT) to charge the monetary authority amid fears that the Selic level (basic interest rate) will stifle economic activity.