“Autonomy of the Central Bank is a step forward and removes political criteria”, says Rodrigo Pacheco to CNN

The president of the Senate, Rodrigo Pacheco (PSD) said this Wednesday (8) that the autonomy of the Central Bank was a step forward and that the model departs from political criteria. The statement was given after the CNN question whether there would be room in the Senate for discussion of a matter that once again changes the rules of the Central Bank. The BC’s performance and the current interest rate were the target of criticism this week by President Luiz Inácio Lula da Silva (PT).

“The matter was approved by both houses and sanctioned, then there was a constitutionality discussion in the Federal Supreme Court. I even defended the constitutionality. I forwarded memorials to the ministers of the Supreme Court. I consider it a step forward, an autonomy that removes political criteria from something that has a very strong technical aspect, which is the Central Bank. We will seek to take care of the country’s issues, face the problems within this reality that exists, this autonomy of the Central Bank and seek to create the necessary bridges between the people involved so that we can have a common, successful purpose. That’s what I believe,” said the President of the Senate.

Rodrigo Pacheco also praised the president of the Central Bank, Roberto Campos Neto, and president Luiz Inácio Lula da Silva.

“The president of the BC is a well-prepared man, with a very good attitude and President Lula is really determined to face problems of hunger, extreme poverty, to give stability to Brazil. They are all men of good intentions, and when men of good intentions come together, problems are solved”.

Central Bank autonomy

The law establishing the autonomy of the Central Bank was sanctioned in 2021 by former President Jair Bolsonaro (PL). Among the rules provided for in the law is the definition of a fixed term of office for the president and directors of the institution of four years, with the possibility of reappointment for the same period.

In the view of experts interviewed by the CNN the independence of the BC is intrinsically linked to the existence of this mandate, as it removes political interference that could divert the BC from its monetary policy objectives.