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Interest rate decisions guide “Super Week”, with expectations of messages from BC to Lula

Economic indicators, corporate balance sheets and decisions of the main central banks in the West.

This is the agenda for this “super week”, with the markets looking mainly at monetary policy decisions in the face of a possible global recession.

The Federal Reserve System (Fed, central bank of the United States), Bank of England (BoE) and European Central Bank (ECB), in addition to the Brazilian BC — target of the spotlight since the arrival of Luiz Inácio Lula da Silva (PT) ) to the Presidency for the third time.

After almost a month listening to complaints and criticisms, it was BC’s turn to speak. The first monetary policy meeting of the year this Monday (30), with an independent Central Bank in a Lula government, attracts attention not only for the decision on the interest rate, which should remain at 13.75% pa, but for the messages that the president of the autarchy, Roberto Campos Neto, will be transferred to the PT administration.

In order not to lose its institutional character, the Central Bank must express concern about risky decisions on public spending and inappropriate debates, which hinder the fall of inflation and, therefore, interest rates.

Among the targets of the Monetary Policy Committee, there may be the return of public banks as growth drivers, not only in Brazil, but in neighboring countries in Latin America. Questioning the credibility of the Central Bank or the inflation targeting system should also appear as a source of risk for the economy.

Even abusing the “economês”, Campos Neto needs to show that he is not intimidated by political discourse. This will be the great test of the independent BC in the change of government.

Abroad, the challenge is starting to change face, from combating the highest inflation in decades to the risk of recession in rich countries.

Presented by Thais Heredia, the CNN Money it presents a balance of the news subjects that influence markets, finances and the direction of society and the dynamics of power in Brazil and in the world.

*Posted by Tamara Nassif

Source: CNN Brasil

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