This Tuesday, President Luiz Inácio Lula accused the president of the Central Bank, Roberto Campos Neto, of working to harm the country, signaling that he will appoint a successor to the position of head of the agency who is “serious, responsible and immune to momentary nervousness from the market”.
“The president of the Central Bank does not demonstrate any capacity for autonomy, he has a political side and, in my opinion, he works much more to harm the country than to help,” said Lula in an interview with CBN Radio.
According to the president, the autarchy’s behavior is the only “misfitting thing” in Brazil at the moment and the interest rate cannot be “prohibitive” for productive sectors. He said it was “sad” the possibility of the BC leaving the Selic rate, now at 10.50%, unchanged.
On Wednesday, the BC Monetary Policy Committee (Copom) will announce its decision on the Selic rate, with broad market expectations that interest rates will remain at the current level, ending a cycle of seven consecutive cuts.
Economists consulted by the monetary authority in its Focus survey began to see that there will be no more interest cuts this year, amid increased uncertainty in the domestic and external scenarios.
“Brazil doesn’t need this. There is an extraordinary degree of trust in Brazil”, countered Lula.
Lula has criticized Campos Neto’s actions since the beginning of his third term. The BC president was appointed by Jair Bolsonaro and will hold the position until the end of this year.
In this Tuesday’s interview, Lula said it was necessary to find out who Campos Neto “is subjected to”, criticizing a meeting between the head of the BC last week and the governor of São Paulo, Tarcísio de Freitas, an opponent of the leader of the Executive.
Asked about the succession to the presidency of the BC, Lula cited some important characteristics that his nominee must possess. He signaled that he intends to choose a name that is committed to controlling inflation and developing the country.
He also defended that the president of the municipality must respect his position and not submit to pressure from the financial market, saying that the market “often” does not contribute to the country.
“When it comes to choosing a president of the Central Bank, it will be a mature, seasoned, responsible person, who has respect for the position he holds and who does not submit to market pressure,” he said.
The BC’s monetary policy director, Gabriel Galípolo, is seen as a possible successor to Campos Neto. He was appointed by Lula to the position after serving as executive secretary of the Ministry of Finance at the beginning of his term.
2024-06-18 23:29:20