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Haddad classifies 1 percentage point increase in interest rates as a “surprise”
The 1 percentage point increase in the Selic rate (the economy’s basic interest rate) represents a “surprise on the one hand”, but it was already expected by the financial market, said Finance Minister Fernando Haddad on Wednesday (11). He said he was pursuing fiscal goals and stressed that the spending cut package sent to Congress is “adequate and politically viable”.
“It was a surprise on the one hand. But on the other hand, there was a price [from the financial market] in this sense. I will read it calmly, analyze the statement, and speak to some people after the silent period”, declared Haddad upon leaving the Finance Ministry about an hour after the end of the Copom meeting.
Until the middle of last year, Haddad explicitly commented on Copom’s decisions, criticizing the Central Bank’s delay in starting to reduce interest rates and the tone of some statements. When the monetary authority began to reduce the Selic rate in August of last year, the minister celebrated the decision.
Fiscal package
Regarding the fiscal package, Haddad said that one week is enough for the measures to be approved in the Chamber of Deputies and the Senate, even with the impasse in the release of parliamentary amendments. According to the minister, the fiscal adjustment, estimated at R$$ 71.9 billion by 2026 and R$$ 327 billion by 2030, was politically feasible.
“This type of thing is difficult to process in the National Congress. We sent an adjustment that we consider adequate and politically feasible. You can send twice as much there, but what will come out [be approved] is what matters,” he said.
The minister did not specify which points the government could change in the bill that tightens the rules for access to the Continuous Benefit Payment (BPC). However, he emphasized that it is possible to change parts of the bill. So, we seek to calibrate the adjustment to the needs of maintaining fiscal policy.”
Source: Newsrondonia
The 1 percentage point increase in the Selic rate (the economy’s basic interest rate) represents a “surprise on the one hand”, but it was already expected by the financial market, said Finance Minister Fernando Haddad on Wednesday (11). He said he was pursuing fiscal goals and stressed that the spending cut package sent to Congress is “adequate and politically viable”.
“It was a surprise on the one hand. But on the other hand, there was a price [from the financial market] in this sense. I will read it calmly, analyze the statement, and speak to some people after the silent period”, declared Haddad upon leaving the Finance Ministry about an hour after the end of the Copom meeting.
Until the middle of last year, Haddad explicitly commented on Copom’s decisions, criticizing the Central Bank’s delay in starting to reduce interest rates and the tone of some statements. When the monetary authority began to reduce the Selic rate in August of last year, the minister celebrated the decision.
Fiscal package
Regarding the fiscal package, Haddad said that one week is enough for the measures to be approved in the Chamber of Deputies and the Senate, even with the impasse in the release of parliamentary amendments. According to the minister, the fiscal adjustment, estimated at R$$ 71.9 billion by 2026 and R$$ 327 billion by 2030, was politically feasible.
“This type of thing is difficult to process in the National Congress. We sent an adjustment that we consider adequate and politically feasible. You can send twice as much there, but what will come out [be approved] is what matters,” he said.
The minister did not specify which points the government could change in the bill that tightens the rules for access to the Continuous Benefit Payment (BPC). However, he emphasized that it is possible to change parts of the bill. So, we seek to calibrate the adjustment to the needs of maintaining fiscal policy.”
Source: Newsrondonia
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