Lula’s public enmity with Campos Neto, from BC, becomes a political enigma

There is an enigma surrounding the president of the Central Bank (BC): Roberto Campos Neto has become an enemy of President Luiz Inácio Lula da Silva (PT) because he keeps interest rates high and warns about the risks of the new government’s spending policy, or because Is it Jair Bolsonaro’s (PL) legacy and has he never disguised his rapprochement with the former president?

Lula and Fernando Haddad’s irritation with the tone adopted by Campos Neto to justify high interest rates was backstage information. Not anymore.

The President of the Republic and the Minister of Finance admitted, loud and clear, that they feel betrayed and provoked directly by Campos Neto. For Lula, the BC’s “citizen” communication is a disgrace; for Haddad, it is unfair, because it does not consider what has already been presented by him and the commitments assumed.

While a rational answer to the political enigma does not appear, economic pragmatism will prevail, with future interest rates on the rise and the time to lower the economy’s basic rate increasingly distant.

The government harbors some hope that the head of the Central Bank will reduce the fervor in the minutes of the Monetary Policy Committee, released this Tuesday morning (7).

A truce, however, cannot compromise the BC’s credibility in fulfilling its mandate, guaranteeing currency stability and not accommodating the government’s public policies.

In this Tuesday’s episode, CNN Money also shows Campos Neto’s reception of Lula’s criticism and the evolution over the last few years of disbursements by the National Bank for Economic and Social Development (BNDES), whose new president, Aloizio Mercadante (PT) , took office yesterday morning.

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