After the interest rate is maintained at 13.75%, Lula says Campos Neto ‘plays against the Brazilian economy.’
The President stated that he has been urging senators to verify whether the President of the Central Bank is complying with the law. Lula is in Europe, where he has engagements in Italy and France. President Lula (PT) said that the President of the Central Bank, Roberto Campos Neto, “plays against the Brazilian economy” after…
The President stated that he has been urging senators to verify whether the President of the Central Bank is complying with the law. Lula is in Europe, where he has engagements in Italy and France.
President Lula (PT) said that the President of the Central Bank, Roberto Campos Neto, “plays against the Brazilian economy” after the Monetary Policy Committee (Copom) maintained the benchmark interest rate at 13.75%. The statement was made during a press conference in Italy on Thursday (22).
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Lula is on a trip to Europe, where he has a schedule in Italy and France. The former president has already met with Pope Francis and Italian Prime Minister Giorgia Meloni.
When questioned about the decision to keep the interest rate in Brazil, Lula once again criticized Campos Neto. The president stated that the level set by the Central Bank is “irrational.”
“It’s not about the government fighting with the Central Bank. It’s the Brazilian society that is fighting with the Central Bank. It’s irrational what is happening in Brazil, to have an interest rate of 13.75% with an inflation rate of 5%,” he said.
Lula also mentioned that he is urging senators to verify whether Campos Neto is complying with the legislation due to the autonomy of the Central Bank.
“I think this individual plays against the Brazilian economy. There is no acceptable explanation as to why the interest rate is at 13.75%,” he asserted.
Copom’s Decision
In a statement, the Copom stated that the decision to maintain the interest rate at 13.75% has been effective in controlling inflation. The committee emphasized the need for “patience” and “serenity” at this time.
“The committee believes that the current situation requires patience and serenity in the conduct of monetary policy and reminds that future steps of monetary policy will depend on the evolution of the inflation dynamics,” the note says.
Market expectations are that the interest rate will start to decrease from August onwards. However, the statement from the Copom’s meeting on Wednesday (21) did not provide any indication of such a move.
Source: https://g1.globo.com/politica/noticia/2023/06/22/apos-taxa-de-juros-ser-mantida-em-1375percent-lula-diz-que-campos-neto-joga-contra-a-economia-brasileira.ghtml