Central Bank President Gabriel Galipolo had to hear parliamentarians appeals to reduce interest during a session held on Tuesday, April 1, in the Chamber of what celebrated the 60th anniversary of the municipality. While the guests to compose the table have exalted the importance of monetary authority, parliamentarians complained about Selic’s level.
“I come in the name of the Brazilian people to tell you that we do not accept this interest rate, that we do not agree, and that the fundamentals are wrong,” said Deputy Luiz Carlos Hauly (Somos-PR), around 10:10 am.
“What does Brazil want? Immediately, to overthrow this interest rate at least in half. It is unacceptable, President Galipolo, you follow the same methodology of Roberto Campos Neto, former president of the BC nominated by Jair Bolsonaro.”
On the 19th, the BC increased Selic from 13.25% to 14.25% per year, and signaled a new elevation, less than 1 percentage point, at the next meeting of the May Monetary Committee (Copom). “You are responsible for the economic setback of Brazil,” said the deputy, in the Tribune, adding that the high interest rates harm companies.
Other parliamentarians made similar criticism, though in a milder tone. Mauro Benevides Filho (PDT-CE), at one point, said that since 1999 primary results have been insufficient to reduce public debt, which responds to the Selic rate. He said government and congress have contributed to fiscal adjustment. “So I think the Central Bank, Data Venia, my dear president and friend Galipolo, I think Copom needs to take an examined, and then only the final outburst,” he said.
Former BC president and former Finance Minister Henrique Meirelles came out in defense of the monetary authority after Hauly’s speech.
“We would all like to have Brazil with controlled inflation and also a interest rate that could be in agreement with another country. And this is not simply a will of monetary authority. It is a central reality, it has to have technical ideas for protection, and it has the fundamental responsibility to maintain inflation near or ideally,” said Meirelles. “President Gabriel, congratulations on his management, for his brave attitude, exactly to take the right measures, putting interest rates where they have to be for the control of inflation,” he added.
Homage
Other authorities also honored the BC. The former president of the municipality and now representative-chief of the Bank of International Compensation (BIS) for the Americas, Alexandre Tombini, said that, in the midst of great international uncertainty, it is important to have “a solid institution, with a solid team”, referring to the municipality. “To move in such an environment, nothing more important than a solid institution like the Central Bank of Brazil,” he said, praising Galipolo and the BC’s functional body.
The Secretary of Economic Reforms of the Ministry of Finance, Marcos Pinto, stressed the increase in banking in Brazil, but said that it is necessary to create the conditions for the financial system to work for all Brazilians. “I have no doubt that the Central Bank will have this task and will be able to play this role,” he predicted. Already the vice president of internal controls and risk management of Banco do Brasil, Felipe Prince, recalled the initial joint history of the institutions, noting that they went from sisters to twin sisters, while still complementary tasks to this day.
The president of the National Confederation of Financial Institutions and former president of the House of Representatives, Rodrigo Maia, recalled passages of economic turmoil in Brazil and worldwide, when he met with some of his presidents and cited Arminio Fraga, Henrique Meirelles, Alexandre Tombini and Roberto Campos Neto. “I’m sure not least will be the role of President Galipolo, who has a high quality in articulation and dialogue capacity.”
