The next president of the BC said it was not his role to comment on the government’s fiscal policy; stated that its function is to help understand the impact of decisions in the financial market
, said it was not his role to comment on the government’s fiscal policy. He stated, however, that he had faith in the Minister of Finance, whom he called “amigo”. He had been asked about the market’s negative reaction to .
“My role here is not to make any kind of comment on fiscal policy. The Central Bank analyzes tax policy based on its impact on asset prices. But I can give a statement. I am convinced of the commitment of my friend Fernando Haddad […] If Fernando is convinced that this is right for society, he buys the fight and goes to the end.”said the director of Monetary Policy at the BC during in São Paulo this Thursday (28.Nov.2024).
During his speech, Galípolo reinforced that his role is only to help the economic team understand the dynamics and impact of decisions in the financial market, and not to interfere in the actions: “We do the report”.
The director a meeting with the president (PT) on Monday (Nov 25) about the spending cut package. At the time, Haddad said that Galípolo’s presence at the meeting was because the head of the Executive wanted to hear Galípolo’s perception of the measures that would be announced.
SELIC
Asked about the increase in the basic interest rate, Galípolo, said that the municipality will continue to pursue the inflation target of 3%.
“[O Banco Central] will fulfill its mandate and remains firm in its objective, which is to pursue the inflation target. This can happen in different doses, with more or less costs, but this is the mandate of the Central Bank and we remain firm in pursuing the goal”said Galipolo
Since the beginning of the year, Lula has addressed the current president of the Central Bank, Roberto Campos Netos, for the increases in the Selic. The rate . The market estimate is that .
Second, Gallipolo, the function of the BC “It’s not about being applauded”. He did not rule out a possible increase in interest rates during his administration, which begins in early 2025.
