PT member pressures monetary authority to reduce Selic during launch of the government’s new housing program
The president (PT) stated this Monday (October 20, 2025) that the it needs “start to lower” the basic interest rate in Brazil to allow the expansion of the economy and credit.
“The BC will need to start lowering interest rates. Everyone knows what we inherited and that we are preparing this country to have a decent monetary policy”said Lula in a new government housing program that will offer credit for home renovations and expansions. The highest interest rate on the initiative is 1.95% per month.
During a speech about the program, Lula defended that companies and bankers should make a profit, but without “extort the people”. Said financial institutions can make money “quietly, lending at reasonable interest rates”, if the BC lowers interest rates.
“I want all businesspeople to make a lot of money, for their companies to grow, produce, generate jobs. I want the automobile industry to sell as many cars as it needs, I want bankers to make money – but there is no need to extort the people”he declared.
Since the beginning of his 3rd term, Lula monetary policy and the autonomy of the Central Bank, which was commanded until December 2024 by Roberto Campos Neto – appointed by (PL).
Under the Presidency of appointed by Lula in January 2025, the (Monetary Policy Committee) of the Central Bank in June, Brazil’s basic interest rate was 15%, the highest level since July 2006. At the last meeting, in September, the collegiate for the 2nd consecutive time for maintaining this level.
The BC has been signaling that the rate is raised for an extended period with the aim of bringing inflation back to the 3% target.
Brazil in September monthly rate of 0.48% in the IPCA (Broad National Consumer Price Index). In the last 12 months, inflation increased from 5.13% to 5.17%.
