‘Copom minutes are a slap in the face of the country’, says Gleisi

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247 – The president of the PT, federal deputy Gleisi Hoffmann (PR), used X, formerly Twitter, to protest against the president of the Central Bank, Roberto Campos Neto, and other members of the authority’s board of directors for the content of the minutes released about the last meeting of the Copom (Monetary Policy Committee). This Tuesday’s minutes (26) say it is a mistake to take Copom’s decision to reduce the pace of cuts in the basic interest rate, the Selic, as certain, based on the communication made last week.

“The base scenario did not change substantially, but, with the uncertainties of the scenario, it was deemed appropriate to have greater monetary policy flexibility. Even though the communication already contained an embedded conditionality, it was assessed that it did not bring the required flexibility. This change merely reflects a cost-benefit analysis of the use of this additional monetary policy instrument. Finally, it was reinforced that it would be a mistake to interpret the change in future signaling as an indication of a change in the monetary policy cycle compatible with the scenario- base”, says the document.

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When citing factors that would have made the economic scenario more “uncertain”, the Copom speaks of doubts about the speed of disinflation in the face of more resilient economic activity, with an acceleration in income and wages. For Gleisi, justifying the abusive interest rate policy based on economic growth “is a slap in the face to the country.” “Treating increases in employment and wages as threats to lower interest rates, as the Copom minutes do, is a slap in the face of the country. It is Campos Neto’s BC that is a constant and increasing threat to economic growth that Brazil needs so much. All it takes is for the economy to show positive signs, and they reinforce the stratospheric interest rate policy, among the highest on the planet. This irresponsibility needs to stop.”