Fernando Haddad considers the central bank’s decision to keep the interest rate at 13.75% per annum “disturbing”. (Photo: Lola Marquez/Agência Brasil)
Finance Minister Fernando Haddad took part in an interview with CBN Radio, where he took the opportunity to criticize the current base interest rate. This week, the Central Bank (BC) chose to keep the interest rate at 13.75% per annum, despite pressure from the government to lower it.
“Today, I saw criticism of Cobum’s decision in the Valor Econômico newspaper and my opinion is that we can really start recalibrating interest rate policy,” he said.
Haddad says he respects the decision as an institutional matter for the central bank, but the criticism is not part of a political debate, but rather a technical one.
On Thursday (4), the Minister of Finance also spoke about the interest rate, claiming that he sees the Monetary Authority’s decision as “disturbing.” “I was very worried about yesterday’s decision [quarta, 3] From our COBUM, to maintain the highest interest rate in the world, in an economy that currently has one of the lowest rates of inflation.
Again, he tried to distill the idea of politics versus technology. On my part, there shall be no kind of political pressure, in the pejorative sense of the term, upon a public body which shall have the same legitimacy as I had when appointed by the President. We’re pretty clear on this, but it’s a topic [Selic] Which is what matters, yes, fiscal policy.”
While Haddad “knocks” the Central Bank, President Luiz Inácio Lula da Silva was in the Queen’s Land, which will officially become the King’s Land from Saturday (6). This Friday (5), Lula met with the Prime Minister of the United Kingdom, Rishi Sunak. This Saturday coincides with the coronation of King Charles III.
Economy
The week ends on a quieter schedule after a flurry of central bank meetings and interest rate decisions around the world.
Among the most important data of the day is the employment report in the United States. This is one of the indicators that the Federal Reserve (the US central bank) is watching to see how much it should tighten its monetary policy.
The US created 253,000 non-farm payrolls in April, higher than expected. The unemployment rate was 3.4% for the month. The forecast, according to the Refinitiv consensus, was that employers would create 180,000 jobs per month. The unemployment rate estimate was 3.6%.
