President Luiz Inácio Lula da Silva told business leaders Monday night that he would do everything within his power to reduce Brazil’s interest rates, while insisting that his government would not abandon its social commitments.
The remarks came during a roughly three-hour dinner at the official presidential residence in Brasília. According to Folha de S.Paulo, which based its account on participants’ reports, the meeting focused mainly on Brazil’s fiscal situation and public security. The atmosphere was described as cordial.
Fiscal Concerns
Lula said he had been reluctant to meet representatives of the business and financial sectors because of their doubts about his government’s fiscal commitments. After citing figures from his previous administrations and his current term, he asked what more he could say to demonstrate his commitment to responsible management.
The president also argued that high interest rates do not depend on him alone. He referred to the independence of Brazil’s Central Bank and said monetary and fiscal policy must be made compatible. Brazil’s Central Bank sets interest rates to control inflation, while fiscal policy covers government spending, revenue and debt management.
Folha reported that Vice President Geraldo Alckmin made an emphatic case for strict fiscal adjustment as a condition for lower rates. The newspaper said increased public spending under Lula has widened the Treasury deficit and added pressure to inflation, prompting the Central Bank to maintain borrowing costs at elevated levels.
Finance Minister Dario Durigan, Planning and Budget Minister Bruno Moretti and Aloizio Mercadante, president of the Brazilian Development Bank (BNDES), also spoke at the dinner.
Business and Politics
The guest list included Joesley Batista of J&F, Rubens Ometto of Cosan, executives from the health-care and fuel industries, and the heads of public and private banks. Bank executives included Luiz Carlos Trabuco Cappi of Bradesco, Roberto Setubal of Itaú Unibanco and André Esteves, owner of BTG Pactual.
Business leaders reportedly complained about political appointments to regulatory bodies, including Brazil’s Administrative Council for Economic Defense (Cade), the antitrust authority, and the Securities and Exchange Commission (CVM).
Lula’s outreach is taking place alongside meetings between company executives and Senator Flávio Bolsonaro, a rival of the president in the presidential election and a member of the Liberal Party (PL). Folha said invitations to Lula’s dinner were made before the senator’s meetings with major business figures became public.
The U.S. tariff increases under President Donald Trump and Brazil’s public debt were mentioned only briefly. Debt returned to the political debate after Lula said in a television interview that he was not worried about it.
Lula told the guests that they should decide what future they wanted for Brazil. He said the country grows under his leadership and joked that Brazil’s economy tends to expand by more than 3% when he is in office. He also said growth must include social inclusion.
The president’s comments were applauded by the business leaders and bankers. Folha described the account as single-source reporting based on people who attended or were briefed on the dinner.