Minister of Finance assesses that a high rate could compromise fiscal policy and defends a consistent path of cuts
The Minister of Finance, Fernando Haddad, argued that Brazil must have a single-digit basic interest rate and no longer go back to a double-digit rate, like the current one. He spoke this Friday (6) at a meeting of the PT national directory, in Salvador (BA), and then began answering questions from party members and guests.
“I know that the Central Bank is the owner. I tell my partner who was a lawyer, worked with me, got there through the hand of President Lula. I have said that I think the interest rate (Selic) is restrictive at a level that may even compromise tax work“, began Haddad, when provoked on the subject, making reference to the current president of the monetary authority, Gabriel Galípolo. “As soon as the economy starts to slow down too much, you will have a breakdown in fiscal policy”, he continued.
For the minister, in monetary policy work, it is necessary to seek “the right path”. “Obviously I know the constraints that the Central Bank goes through. But that’s why the signaling that was made last is that this cutting trajectory will happen consistently. Whoever is there in that chair knows where they are pinching their nerves”, he added.
Afterwards, he recalled that he has been saying since 2025 that he thought it was time to “start thinking about a consistent trajectory so as not to go back”. “We have to go to single-digit interest rates and never think about double-digit interest rates in Brazil again.”
Haddad said that there are ways to ensure that the economy has a guaranteed minimum growth “even at this rate”. “Last year, with everything that happened, we must have grown between 2.2% and 2.4%, maintaining the average of 3%, which was what I intended when I presented the government plan to Lula. I said, we are going to grow 3% on average. I think it is double the average growth over the last eight years. And then, later, we can think about more.”
Fighting corruption
Commenting on an interview given by President Luiz Inácio Lula da Silva on Thursday (5), Haddad said that the president “showed that this government, once again, is the one that most fights corruption in an institutional way, without politicizing it, technically”.
The minister maintained that the Federal Police, the Central Bank, the Federal Revenue Service and Coaf work without political interference, technically, to do what has to be done. “All the president’s guidance has been this. I don’t want to know, whoever did it pays, there is no partisanship, there is no politicization. No one will prevent an investigation, no one will prevent things from coming to light so that they can be clarified. It could be a minister, it could be a relative, it could be whoever it is, he can be held accountable for his actions. This has been President Lula’s practice.”
*Estadão Content
