Senate sitters are calling for action after British Columbia decides to maintain the highest interest rates on the planet

247 – The National Chair of the Labor Party, MP Gleecie Hoffman (PR), took to social media to express her displeasure after the central bank decided, once again, to keep the key interest rate at 13.75%, despite indications of lower inflation. . Brazil has the highest real interest rate in the world.

The leader demanded action from the Senate to analyze the removal of executives from the monetary authority, which, according to her, is deliberately sabotaging the economy. “This situation can no longer be tolerated,” Jleesi said in one of the posts. “One thing is certain, these people will leave.”

The indicator level is high and against the grain of the economic scenario, with expectations of an increase in gross domestic product (GDP) and a decrease in inflation. However, the central bank has not even indicated clearly that it will change the direction of monetary policy, insisting on the tightening path.

>>> Much to the government’s frustration, Copom adopts a stern tone

Supplementary Law 179/2021 states that the National Monetary Council (CMN) is one of the few methods that can lead to the downfall of the institution’s leadership. The network includes, in addition to Campos Neto, Ministers Fernando Haddad (Finance) and Simon Tebbit (Planning).

Follow up on recommendations

The legislation states that the chairman and directors can be acquitted “when they provide demonstrated and repeated inadequate performance to achieve the objectives of the central bank.” In 2022, inflation in the country was above the institution’s target for the second year in a row. In this case, the CMN must submit a motion of dismissal to President Lula, whose approval depends on an absolute majority in the Senate.