PT President says ‘Central Bank is an obstacle to development’ in Brazil

For Gleisi Hoffmann, setting high interest rates drives away investors from the private sector, hindering economic growth.

Gleisi Hoffmann is the national president of the Workers’ Party

the president of Workers’ Party, Gleisi Hoffmannsaid this Monday, the 6th, in Rio de Janeiro, that central bank currently represents an obstacle to Brazil’s growth by deciding base interest rate, Selic, at 13.75%. According to her, the country’s demand has weakened and does not exert pressure on Brazilian inflation. For the PT president, BC should look for other means to fight the high prices in the country. “The Central Bank cannot be an obstacle to the development of the country. At the moment it is, with an interest rate of 13.75%, obviously this affects the willingness of the private sector to invest. Who will have the courage to invest at this rate? So leave it to the financial system,” Hoffmann said. Shortly before this statement, the president Lulapresent, together with Gleisi Hoffmann, at the inauguration of the new president of the National Bank for Economic and Social Development (BNDES), Aloizio Mercadante, declared that there is no justification for Selic to be at 13.75%.

“How am I going to ask Josué to get the businessmen associated with Fiesp to invest if they can’t get loans? How many years have we been fighting for interest rates in this country? I thought: “Well, now everything is solved, the Central Bank is independent, there will be no more problems with interest.” Error. The problem is not an independent or government-linked bank, the problem is that this country has a culture of living with high interest rates that do not match our need for growth,” said Lula. In 2022, IPCA, the country’s official inflation, as measured by IBGE, closed at 5.79%, again above the ceiling set by the government.

*With information from reporter Rodrigo Viga

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