Haddad called the increase in the interest rate by 1 point a “surprise.”
An increase of 1 percentage point in the Selic rate (the basic interest rate in the economy) represents a “surprise on one side,” but it was already predicted by the financial market, said Finance Minister Fernando Haddad this Wednesday (11). He stated that he pursues financial goals and emphasized that the package of measures aimed at reducing expenses sent to Congress is “adequate and politically viable.”
“On the one hand, it was a surprise. But on the other hand, in this sense, there was pricing [in the financial market]. I will calmly read it, analyze the statement, and talk to some people after the period of silence,” said Haddad, leaving the Ministry of Finance about an hour after the Copom meeting ended.
Until the middle of last year, Haddad openly commented on Copom's decisions, criticizing the Central Bank's delay in starting to lower interest rates and the tone of some statements. When monetary authorities began to lower the Selic rate last August, the minister celebrated this decision.
Tax package
Regarding the financial package, Haddad stated that one week is enough to approve measures in the Chamber of Deputies and the Senate, even despite the deadlock in adopting parliamentary amendments. According to the minister, the budget adjustment, estimated at $71.9 billion rand by 2026 and $327 billion rand by 2030, was politically viable.
“Such things are difficult to consider in the National Congress. We submitted amendments that we deemed appropriate and politically viable. You can send twice as many, but what matters is what gets approved,” he stated.
The minister did not specify which aspects the government might change in the project that tightens the rules for accessing the Continuous Cash Benefit (BPC). However, he emphasized that parts of the project can be changed. Thus, we aim to calibrate the adjustment considering the needs of maintaining fiscal policy.
Source: Newsrondônia