May 28, 2023

Campos Neto says the exorbitant money is the fault of the government debt

According to the head of the BC, the union is “competing” with businessmen “for the funds it has available to invest in projects.”

president central bankAnd Roberto Campos Neto, He said that the high level of interest rates is not British Columbia’s fault, but the fault of the government’s debt. According to him, it isfallacyWe say that inflation is not related to demand.

We must be careful not to reverse values. If you, a businessman, are trying to get some money and it’s expensive, it’s not BC’s fault, because it’s evil, it’s the government’s fault, which owes so muchHe stated in an interview with CNN Brazil.

Campos Neto explained his speech:The government is your competition [empres├írio] For the money you have available to invest in projects. So, the main reason interest rates are going up is because someone is competing for the same resources and paying more.“according to him,”The cost of money will be cheaperIf the union debt is smaller.

When we think that today the government issues a long-term issue and pays a real interest rate higher than 6%, this has nothing to do with the central bank, this is a long-term perception and there is a risk that justifies the interest rate of 6%He spoke.

asked about the president Luiz Inacio Lula da Silva (PT), Campos Neto replied:I’ve talked to him, and I’m available to talk to him, any day, any time, any time.

Since becoming president, Lula has been critical of BC and Campos Neto. According to the head of the central bank:i have nothing“Which the agency does not want to discuss.”On the contrary, I am trying to arrange a meeting with as many government ministers as possible.“, He said.


Read more about BC criticism:


Campos Neto said he saw two.FallaciesIn discussions about inflation and interest rates. “First, that inflation is not a requestHe spoke.Supply components were present at one point, most notably during the invasion of Ukraine, but they have dwindledI continued.

Today, we have a clear understanding of the components of demand and we can quantify and look depending on the indicator or what is happening in the economy, what is the demand and where is that demand coming from. This is the first fallacyhe announced.

The second fallacy isThat there’s also nothing that says “when it comes to supply inflation, you’re not doing anything”Campos Neto said. “Because BC has to fight demand inflation and it has to fight what we call the secondary effects of a potential supply shock.

Campos Neto said he neither wants nor expects to be reappointed to the position. “It has nothing to do with the current government or the previous government. I’ve said since the day I joined that I don’t want to be resetHe declared, adding that the mandate “You can do a lot“.

According to him, his mandate will be carried out to the end. “I intend to stay until the end of the term, and I think it is important to get the job done. We always want to implement the mandate in the best way possible, to make the transition as smooth as possible, when the transition has to be madehe announced.

tax base

Campos Neto praised the Minister of Finance, Fernando Haddad whom he namedbraveunder the new tax rule sender to Congress.

I think that [Haddad] You are on the right track. I praised and still pay tribute. I think, given the situation, given the government, given the internal forces within the government, what was done was very brave.“, He said.

According to him, the new financial framework succeeds in eliminating doubts about the possibility of Brazil’s debt explosion. “I think the framework, even if it doesn’t have a lot of changes in Congress, it kind of eliminates that possibilityHe spoke.