Interest rate debate caused instabilities and alienated investors, indicates Radar +55 study, with foreign media reports
Monetary policy in Brazil was the most criticized topic in the foreign media in the 1st quarter of 2023. One of the reasons for this scenario was the clash of the president’s government Luiz Inacio Lula da Silva (PT) with the president of the Central Bank, Roberto Campos Neto.
Abroad, the petista was quoted more negatively than the BC president. In 25% of negative news about monetary policy, Lula was the spokesperson. Campos Neto was the target of 17% of the criticisms made.
The data are from a survey carried out by the Radar +55, hub of innovation of BCW Group. 295 news were analyzed throughout the 1st quarter of this year from the main media outlets in 7 countries: Germany, Argentina, China, United States, France, England and Mexico. Here’s the full (878 KB) of the study.
“Maintaining the opposition discourse of the electoral period, the government itself exercised an active voice in the negative exposure of the country when dealing with interest rates and questioning the BC’s autonomy. The uncertainties and lack of prospects arising from this conduct were also identified as a factor that discouraged foreign investment”says an excerpt from the study.
The survey shows that the clash between the government and the Central Bank causes “financial market instability” and encourages “criticism of the government’s stance, removing investor confidence in the face of an obscure and conflicting scenario”.
Since the beginning of the mandate, the president, his ministers, allies and his party, the PT, has been toughening and raising the tone in the criticism of the high interest rates in the country. Currently, the Selic rate is at 13.75%.
METHODOLOGY
Radar +55 uses the IDM methodology, developed by the BCW Brasil Group, to assess the reputation of the Brazilian economy in the press of 8 countries. The IDM algorithm considers more than 20 variables in the analysis of each spontaneous media result. The criteria are quantitative and, mainly, qualitative. They refer to the media vehicle in which the result was published and to the content of the article, allowing the creation of insights and data intelligence with the crossing of information and thematic or chronological clippings.
To measure the score, there is a ranking of reports. O Power360 highlights the following analyzed criteria: 1) whether the text has a positive or negative content; 2) what is the emphasis given to the Brazilian economy; 3) if there is a photo and in which vehicle it was published. This information is included in an automated system. The scores for each report are added together to arrive at the final balance.
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