Haddad says that Campos Neto and Copom’s decision on the interest rate was technical: “there is no Lulista and Bolsonarist bench”

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247 – The Minister of Finance, Fernando Haddad, minimized the division exposed in the Monetary Policy Committee (Copom) regarding the interest rate cut this Wednesday, 8th.

The recent rise in the dollar and the increase in uncertainty caused the Central Bank (BC) to reduce the rate of interest cuts. By 5 votes to 4, the Monetary Policy Committee (Copom) reduced the Selic rate, the economy’s basic interest rate, by 0.25 percentage points, to 10.5% per year. The decision was expected by financial analysts.

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This was the seventh consecutive time that Copom reduced the Selic. However, the speed of cuts has slowed down. From August last year until March this year, the Copom had reduced basic interest rates by 0.5 percentage points at each meeting.

Haddad claims to believe that the difference occurred in the technical field: “I don’t agree with this type of assessment. Even out of respect for the professionals who are there, there is no Bolsonarista bench and a Lulista bench in the BC. I believe that the issue of guidance was the reason for the divergence”, he said in an interview with the newspaper Estado de S.Paulo.

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The minister refuted fears that the divergence could raise doubts about the BC’s autonomy. “This is a superficial and ideological reading. And, honestly, I don’t think this question even arises. I consider that the people we nominated are equal to or better than those who left, from a technical point of view and I have no doubt that they will do excellent work”, he stated.

He once again said he was against the BC’s proposal for financial autonomy, currently being processed in the Senate, and defended the readjustment of civil servants offered by the government as an escape valve for this discussion.