The path to lowering interest rates is less complicated than it seems.
Lula's government may convene the National Monetary Council, which coordinates monetary policy, where its ministers hold a 2-to-1 majority.
In a country where even children have understood that an interest rate of 13,75% per year is the best path to an unprecedented catastrophe in Brazilian history, it is difficult to explain why, five months after taking office, the economic policy of the Lula government remains subject to the guidance of Roberto Campos Neto, openly committed to destroying the wealth of what was once the eighth largest economy in the world.
The irrational aspect of this situation becomes more evident when one recognizes the composition of the National Monetary Council, its powers and its duties.
The Ministry of Finance website explains that "the CMN is the highest body of the National Financial System and is responsible for formulating monetary and credit policy, aiming at monetary stability and the economic and social development of the country."
In short: among many other things, it is there that interest rates can be raised or lowered. It is also there that the members of the Monetary Council are announced. In order: the Minister of Finance, the Minister of Planning, and, in third place, the President of the Central Bank.
To call a spade a spade. We are talking about two ministers in Lula's government – Fernando Haddad and Simone Tebet – who have a clear 2-to-1 advantage over an economist trained in neoliberalism, committed to the core to a project of national destruction, political weakening, and economic recolonization.
Above all, we are talking about the fate of a country that has the largest economy on the continent, surrounded by neighbors like Chile and Argentina that, in the wake of severe economic disasters, have lost their political direction.
The composition of the National Monetary Council, favorable to Lula, is a chance to avert a persistent nightmare.
Since the 2016 coup, Brazilians have faced a programmed routine of recession, hunger, and unemployment. There is not much time to lose, as the drama of our neighbors shows.
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* This is an opinion article, the responsibility of the author, and does not reflect the opinion of Brasil 247.