Responding to a statement by Central Bank President Roberto Campos Neto, Minister of the Secretariat for Social Communications (Secom), Paulo Pimenta, reiterated that maintaining high interest rates was an “option” for the monetary authority, which is preventing the country’s growth. Pimenta’s statement reignited the federal government’s criticism of the country’s basic interest rate, the Selic, of 13.75% per year.
“It’s not serious. Maintaining high interest rates to favor profitability and prevent the country from growing is an option,” the minister said in a post on Twitter on Saturday 13th. “Brazil needs cheap ones Credit, the economy can turn around, create jobs and create opportunities. Society is in debt and hostage to this monetary policy that runs counter to national interests.”
Pimenta’s message comes in response to Campos Neto’s statement that the blame for the expensive loans in Brazil lies with the government, which owes a lot, and not with the monetary authority. Campos Neto’s speech took place on the program of businessman Abílio Diniz CNN Brazilrecorded on May 9th and broadcast on the night of this Friday the 12th.
“If the entrepreneur complains about expensive loans, it is the fault of the state, which owes a lot. If the government initiates a long-term issue with a real interest rate above 6%, it has nothing to do with the central bank. If the national debt were low, the cost of money would be low. Interest is not the cause but the consequence of a problem,” Campos Neto commented during the interview. The BC President also reiterated that the inflation target is set by the government, not the monetary authority.
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