The Board decided to keep the base interest rate at 13.75% even with pressure from the government. Second Minister, the decision may jeopardize the ‘financial result’
a Minister of FinanceAnd Fernando HaddadHe said he found the statement from Monetary Policy Board (cobum) on average Silic. This Wednesday, the 22nd, the group announced Maintaining the base interest rate of the economy at 13.75%. This is the fifth maintenance in a row, and it is taking place even after the pressure exerted by President Luiz Inacio Lula da Silva and allies, who are calling for interest rate cuts and criticizing the effects of interest rates on economic activity. Speaking with reporters after leaving the Finance Ministry, Haddad spoke about the statement, saying he considered the document “extremely troubling” and that Cobum was referring to a possible rate hike.
“I found the statement troubling, and very troubling, because today we released a fortnightly report. It shows that our outlook for January confirms the public accounts. The statement leaves open, at a time when the economy is down and credit is in trouble, Copom even hints at the possibility of a rate hike, Which is now the highest in the world. We have read it very carefully, but we believe that the announcement is of great concern. Because, depending on future decisions, we may jeopardize the tax result, because, soon, companies will have problems selling, and collecting taxes. That is our concern.” .
The minister also said he expects the kuboum to soften the statement when the minutes are issued next week, as they did at the first meeting this year. “The first statement came very hard, easing the minutes. A few days later, the minutes came back differently, easing a bit. I hope this will happen again, but we will send our analysis to the Central Bank on what is most recommended for the Brazilian economy to balance, “the minister continued.
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