BOLSONARO RATES

Lula Slams Brazil’s Interest Rates Saying They Hold Nation Back

Caio Rinaldi
Sat, May 6, 2023 


(Bloomberg) -- President Luiz Inácio Lula da Silva renewed his criticism of Brazil’s central bank for failing to lower borrowing costs, saying Brazilian society can no longer stand the Selic benchmark rate at 13.75%.

“I have no problem with the central bank, I disagree with its current policy,” Lula told reporters in London on Saturday. “Those who agree with an interest rate this high, come out and publicly defend it. I don’t agree with it.”

Brazil’s economy is gaining momentum and workers must have access to credit, otherwise economic growth may be hampered, he said.

“Brazilian retailers, businesspeople, workers no longer stand this interest rate,” Lula said.

The central bank held rates steady for the sixth straight meeting on Wednesday, frustrating the government’s calls for the monetary policy to be loosened.

Central bank president Roberto Campos Neto was called out by Lula. “He has no commitment to Brazil. He is committed to the previous administration and those who benefit from high interest rates,” Lula said.

Lula was in London for King Charles III’s coronation ceremony and met Prime Minister Rishi Sunak on Friday before heading back to Brazil on Saturday.