Brazilian Finance Minister, Fernando Haddad He declared himself a partisan Take a long view of inflation and for the central bank to start cutting interest rates.
However, he added that the government cannot expect any decision regarding changing the inflation targets set by the National Monetary Council composed of the Minister of Planning and the Governor of the Central Bank.
“I think a continuous inflation target is much better than looking at a calendar year,” Haddad said in an interview with CBN radio.
The National Monetary Board will set the annual inflation target for the next three years at its meeting in June.
President Luiz Inácio Lula da Silva has called for higher targets and less restrictive monetary policy. For its part, the central bank indicated that the controversy may have raised inflation expectations, forcing interest rates to remain at 13.75%, the highest level in the current cycle.
Brazil’s inflation rate slowed more than expected in the year to mid-April, reaching its lowest level since late 2020.
Haddad repeated his criticism of the central bank, saying that the bank may start cutting interest rates now and that inflation expectations for next year are “very moderate”.
After information appeared in the media that his Executive Secretary, Gabriel Gallipolo, had been named as a possible candidate for the Central Bank’s Board of Directors, the minister said that the government would announce the chosen ones as soon as the decision was made.
However, he acknowledged that Gallipolo could be a candidate for various public offices.