Former Central Bank president praised Fernando Haddad’s work, but criticized resistance within the Lula administration
The president of the Central Bank in the first 2 governments of the President (PT) and Minister of Finance during Management (MDB), Henrique Meirelles said that the distrust of sectors of the financial market in relation to the petista is the result of pessimistic expectations about the Brazilian economy and no political-ideological preferences.
In an interview with Metropolis, Meirelles said that the tax expansion promoted by the Lula administration is one of the biggest concerns of economic agents at this time, and that the escalation of inflation and the uncertainty about the government’s commitment to the adjustment of public accounts also contribute to the scenario of concern.
“The market are thousands of people, not only half a dozen large funds from Faria Lima. The baker of the interior of Bahia is the market ”said Meirelles.
“The market is not a political party. It does not have a uniform position. This is an evaluation error made by many politicians. The market is made up of managers all over the country, small or large, small or large companies, who are taking positions based on what they think will happen in the economy. And this is done regardless of political judgment. The market does not manifest itself politically ”, stated.
The former farm chief praised the current minister’s efforts, but criticized the current “resistance” that the leader of the economic team faces within the Lula administration.
“The big question is to what extent the minister will be able to apply some expense containment regime. The government has already tried to cover the expansion of tax increases, but Brazil’s taxation is already one of the highest in the world. So the way is not around. Will necessarily have to be a limitation of spending ”said Meirelles.
Meirelles also assessed that the current president of the Central Bank, Gabriel Galipolo, “It’s going well and acting correctly” In inflation control, despite PT criticism against increasing the basic interest rate, which is currently 13.25% per year. “The BC, of course, works under pressure, and the president of the BC has to be prepared for it”he explained.
