Minister states that he must make a decision “in the next few days” for vacancies occupied by Maurício Moura and Fernanda Guardado
The Minister of Finance, Fernando Haddadsaid this Friday (20.Oct.2023) that he spoke with the president Luiz Inácio Lula da Silva (PT) on nominations of names to replace the directors of the B.C. (Central Bank) Maurício Moura (Relationships, Citizenship and Conduct Supervision) and Fernanda Guardado (International Affairs and Corporate Risk Management). The terms of office of the 2 in the municipality end on December 31, 2023.
The definition of new names will be announced soon, according to Haddad. “We should make a decision in the next few days”he said in an interview with journalists in São Paulo.
DIALOGUE WITH BC
The head of the Treasury stated that he is in “permanent dialogue” with the monetary authority and that the beginning of the new cycle of Selic cuts – the basic interest rate, currently in 12.75%– it happened “in light of this interaction”.
“We have had an institutional relationship since the beginning of the year that has never been shaken and we exchange information all the time”he stated.
Haddad also said that critics of the Central Bank for the 0.5 percentage point cut in August “you have to review” the position. “In fact, that was the last moment we had to start the cycle of cuts. Monetary policy was very tight, especially due to corporate debt”he pondered.
Since January, the government has criticized the president of the BC, Roberto Campos Neto, for the high Selic rate. The authority says that the decisions are not political and that it is necessary to respect the monetary authority.
Campos Neto argues that uncontrolled inflation is a perverse tax and that an early fall in the Selic would be worse for the country. In August, the president of the monetary authority was responsible for giving the decisive vote.
There were 5 votes in favor of the more aggressive drop, while 4 directors wanted a more conservative drop, of 0.25 pp
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