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Montevideo, April 13th 2024 - 07:14 UTC

 

 

Lula insists in criticizing central bank autonomy: current rate of 13,75% is “irresponsible”

Wednesday, March 22nd 2023 - 10:35 UTC
Full article 5 comments

Brazilian President Luiz Inacio Lula da Silva criticized on Tuesday the country's central bank, saying that an interest rate of 13.75% - its current level - is “irresponsible,” adding he will continue to fight the current level to stimulate the economy. Read full article

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  • Pugol-H

    With a current inflation rate of only 5.60%, he may well have a point, why is the interest rate so high???

    Mar 22nd, 2023 - 12:54 pm - Link - Report abuse 0
  • Brasileiro

    Because the Brazilian ruling class, which lives in the luxury of Miami, needs to keep stealing from Brazil to maintain its extremely high standard of living in Florida.

    Our struggle is to lower real interest rates and force them to invest in Brazil. Or else, that they stop being Brazilians.

    I am not a communist, but what is happening in Brazil today is a class struggle. We are very late. This happened in Europe in the 19th century.

    Mar 22nd, 2023 - 01:35 pm - Link - Report abuse +1
  • Jack Bauer

    Pugol-H
    Hello there ! good to see you well !

    During the Covid-19 pandemic, the Bolsonaro administration paid out big sums of cash to parts of the population, to help those who had lost their jobs and mainly, to keep them fed....these extra expenses came at a cost...they fueled inflation...to control it, while trying the keep the economy on the right track - which was relatively successful considering the world's economic situation, aggravated by Russia's invasion of Ukraine - the Central bank increased the prime rate (SELIC). While the inflationary pressure doesn't drop, it's the only way to curb spending....impopular but necessary. No doubt it has its impact on business (and new investments etc)- it is how central banks go about trying to solve the problem....and, just as a bonus, the president of our Central bank is Roberto Campos Neto, currently recognized as one of the best central bank presidents.
    It is no surpise that the leftist, nine-fingered, brain-dead ex-con is ranting 'n
    raving about the interest rate, because it is a well known fact he cannot bear the idea that he cannot control the independent central bank, which is supposed to control the value of our currency.
    it is also his way of preparing a narrative, to defend himself when the economy tanks under his incompetent leadership....he's just repeating the same ole shite that Dilma did while she was president (with the ex-con's full support, as she was always his sock-puppet). The ex-con made several promises during his campaign, many impossible to achieve unless he manages to manipulate the Constitution into allowing him to spend way more than the revenue from federal taxes...he has done away with the spending ceiling, substituting it with a new law that he is wary of announcing, as it looks like the fastest way for the economy to go down the drain...during these first almost 90 days, his administration has been a disaster, and promises to get worse. He has learned nothing and wants revenge.

    Mar 22nd, 2023 - 05:25 pm - Link - Report abuse -1
  • Pugol-H

    Jack Bauer
    Hey Jack, good to hear you and I trust all is well with you and yours.

    I must admit, I could not see how high interest rates in Brazil equated to money for the rich in Miami, as Braz claimed.

    https://en.mercopress.com/2023/03/23/brazil-central-bank-keeps-rate-unchanged-despite-lula-s-government-complaints-the-highest-in-the-world

    This article gave a better idea of what it’s about.

    And your explanation, as always, comprehensive and insightful, many thanks for that.

    Socialist governments here always spend, tax and spend, borrow and spend then finally print and spend. Always running up big debts for the next gov to pay off by taxing everyone.

    Also Lula will need to be careful with big giveaway spending plans, remembering what happened to Liz Trust.

    If he spooks the money market then borrowing cost will soar with immediate effect and cripple government financing.

    Stay well my friend.

    Mar 23rd, 2023 - 03:01 pm - Link - Report abuse -1
  • Jack Bauer

    Pugol-H,
    Thanks !

    “I must admit, I could not see how high interest rates in Brazil equated to money for the rich in Miami, as Braz claimed.”

    You aren't the only one that can't see the connection....no one with a brain can. While he claims he is not a communist, he is a staunch supporter of the ex-con, so what's the difference ?

    The list of disastrous policies - as a result of absolutely no rational plan for government - plus the 'pearls of wisdom' that have been falling out of the ex-con's mouth, is increasing, and showing that he is not fit to be president. Fact is, he never was - he is repeating the same mistakes as before, believing they will produce a different result.

    Have started to complie a list of his gross mistakes, as it is too long to remember off the bat. He has surrounded himself with a bunch of incompetent nincompoops, which just aggravates the situation.

    Even some of his closer allies have told him to shut up and to stop creating political mayhem, which is fueling inflation, causing loss of investments and making the R$ lose value against other currencies....makes you wonder what he has in mind.....perhaps turning Brazil into Argentina in 6 months, and then into Venezuela in a year from now ??

    And, wonder why Braz does not move to Venezuela ....he, like the ex-con, supports its flourishing democracy....

    Mar 24th, 2023 - 06:56 pm - Link - Report abuse -1

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