President assesses that the economy’s situation is very good compared to the previous government and that inflation is fully controlled
The president Luiz Inácio Lula da Silva (PT) criticized the Central Bank and the president of the monetary authority, Roberto Campos Neto, this Tuesday (June 18, 2024).
“We only have one thing that is out of adjustment in this country: it is the behavior of the Central Bank. This is a misfit thing. A president who does not demonstrate any capacity for autonomy, who has a political side, and who, in my opinion, works much more to harm than to help the country. There is no explanation for the interest rate being the way it is”declared the PT member in an interview with CBN Radio.
The Copom (Monetary Policy Committee) is expected to end the cycle of cuts in the basic rate, the Selic, on Wednesday (June 19, 2024). This is the expectation of financial market agents, who estimate the base interest of 10.5% per year until the end of the year.
Lula said there was no need for Selic to be maintained at 10.5% per year. “We have a situation that does not require this interest rate. Prohibitive rate on investment in the product sector. How are you going to convince a businessman to make an investment if he has to pay an absurd interest rate? Therefore, it is necessary to lower the interest rate compatible with inflation. Inflation is completely under control”he declared.
The PT member once again said that 2024 is the “year of harvest”. He promised that Brazil will be as good as it was at the end of his second term in 2010. “There are countries with an economy growing above what the market imagined. There is a country that is generating more jobs. In 17 months, there were 2.4 million formal jobs in this country. The wage bill is growing 11.5%. The situation is very good from an economic point of view compared to the country we found when we arrived”he stated.
In relation to the president of the Central Bank, Lula mocked Campos Neto’s presence at the dinner promoted by the governor of São Paulo, Tarcísio de Freitas (Republicans), at Palácio dos Bandeirantes, on Saturday (June 15).
“I doubt that this Roberto Campos has more autonomy than I had with the [Henrique] Meirelles. What is important to know is what this boy is subjected to. How is it that he goes to a party in São Paulo almost assuming a candidacy for a government position? Where is his autonomy?” asked the president.
As Campos Neto’s successor, the PT member declared that he will choose someone who is committed to the development of Brazil, to controlling inflation, but who also thinks about a growth target.
“So, when I have to choose the president of the Central Bank, it will be a mature, seasoned, responsible person, someone who has respect for the position he holds, who has respect and someone who does not submit to market pressure. Someone who does what is in the interest of the 203 million Brazilians”he stated.
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