Increasing interest may be remedy to correct inflation, says Haddad

by Andrea
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Minister says the government works to bring dollar to a “proper level” and “correct” problems inherited from Bolsonaro

Finance Minister Fernando Haddad said on Friday (7.FEV.2025) that the government works to bring the dollar to “a more appropriate level”–Algo that will have a reflection,“in the coming weeks”, In the prices practiced. According to him, the country is better today than when ruled by (PL) and it is necessary “have a lot of wisdom”For“to drive”The monetary policy.

If you are having an inflationary peak, you need to correct. The remedy for correcting inflation is often increasing interest rates to inhibit price discharge. Now, all this has to be done correctly, in the right dose”, He said in an interview with the radio City FM 99.7by caruaru (on).

The (Central Bank) decided in January in 1 percentage point. The basic interest rate went from 12.25% to 13.25% per year. The decision was unanimously.

According to Haddad, sometimes, interest should be increased “To discourage the economy a little“Because I know”is very heated, prices will increase”.

The minister stated: “Last year, we have already corrected the distortions of the public deficit. You know that the deficit accumulated in the previous 2 governments was almost $ 2 trillion”.

Haddad stated that “There was a lot of tax benefit for rich businessman”Before the president (PT) took over in 2023.

The rich, as you know, were very favored with tax exemption and we are correcting it. Those who had a fund in fiscal paradise does not tolerate tax in Brazil. And the previous government did not have the courage to charge tax of those who had a fund in Fiscal Paradise“, These.

The minister linked the discharge of the dollar to the election of Donald Trump (Republican Party) as president of the United States.

This made the dollar value worldwide. Coins lost value”He said, adding that the fall of the US currency against the real will be felt in the price of food and fuels.

You know that we matter gasoline and diesel. So this has a reflection on the price“, These. “Now compare with the price 2 years ago. The price today, of gasoline and diesel at the post, is lower than the one of 2 years ago”He said.

The refineries were privatized by Bolsonaro. Have you ever seen a businessman not want to profit on the population? When you privatize a refinery, it will generate profit for those who bought“, These.

Still, the price of original fuel at the gas station is cheaper than with Bolsonaro. (…) I repeat, there is a lot to do. You do not rebuild a country in 2 years. But comparing what life was 2 years ago, I think the advance is very significant”He said.

Haddad spoke about tax creation, such as taxation on the “shopping” of up to $ 50.

Bolsonaro stimulated the smuggling a lot. Very. So the smuggling of goods was very stimulated by him, because he did nothing to fight the smuggling. The governors then came together and started charging ICMS [Imposto sobre Circulação de Mercadorias e Serviços] of smugglers. And this greatly improved the situation of Brazilian retail and small Brazilian industry“, These.

There was a union of the governors, all governors, southeast, northeast, southern, all joined the federal government to combat the smuggling. And started to charge the smugglers, something that was not done by the previous government”He said.

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