President is at odds with the BC, and allies say that the body’s autonomy makes it difficult to implement an economic program
The president Luiz Inacio Lula da Silva (PT) said this Saturday morning (12.Feb.2023) that there is no need to “excuse me” to rule. This can be understood as yet another statement in the context of friction between the government and the Central Bank, although the body was not mentioned.
Lula said, through his profile on twitterwho took over the government in a precarious situation, but who is optimistic.
“We are working hard and we don’t have to ask for permission to govern. We have to serve the Brazilian people who believed in a program that brought us here”declared the president.
In recent days, Lula has been at odds with the Central Bank and its president, Roberto Campos Neto. The PT has said that the interest rate is very high (13.75% per year) and has questioned the need for autonomy from the monetary authority.
Lula cannot simply replace the gift from the Central Bank because in 2021 Jair Bolsonaro (PL) sanctioned the project that granted autonomy to the body. Campos Neto has a mandate until 2024.
The president suggested raising the inflation target to be able to lower interest rates without the government “arrochar”in his words, the public accounts.
Petistas dislike the fact that Campos Neto was close to Bolsonaro. Photo released in the media showed the president of the Central Bank in a Whatsapp group of former Bolsonaro ministers.
In addition, Lula’s allies claim that the PT’s economic program is going in a different direction than the current interest rate and that this program won the election.
“Wasn’t that policy [monetária] approved at the pollssaid the president of the PT, Gleisi Hoffmannon Thursday (Feb 9).
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