"We have a favorable environment for interest rate reductions," Pacheco replied to Campos Neto, president of the Central Bank.

247 - After "To plead" with the president of the Central Bank, Roberto Campos Neto, for a cut in the basic interest rate....the Selic rate, currently at 13,75% per year, and hearing from the head of the regulatory agency that... 'Technical timing is different from political timing', the president of the Senate, Rodrigo Pacheco (PSD-MG), told CNN Brasil on Friday morning (21) that there is already a “favorable environment” in Brazil to signal a cut in interest rates.

In response to Campos Neto, Pacheco emphasized that reducing Brazil's interest rate – the highest in the world – is a demand not only from the government but also from the productive sector. “The basic interest rate, currently at 13,75% per year, is indeed very high. This is the understanding not only of the federal government – ​​the President of the Republic has already stated this – but also of the National Congress and society itself. The productive sector is clamoring for this interest rate reduction. It is very important so that growth can resume, and with economic growth, there needs to be credit to generate good business and jobs. So that's the logic.” 

The senator expressed his support for the Central Bank's autonomy, but cautioned that autonomy should not prevent the institution from being "sensitive" to the country's political and social situation. "We have many reforms already in place, we have a fiscal framework that is already very well structured and will be approved. So we have good prospects and a favorable environment to begin signaling a reduction in interest rates. That was my appeal. Today the president of the Central Bank made technical points regarding this issue, but naturally there is also a component of political and social circumstances that must be taken into consideration. I hope that the outcome of this will at some point be the move towards a reduction in interest rates, which, combined with the stability of our currency and the containment of inflation, will be a good recipe for the resumption of Brazil's growth."

CPMI of January 8th

Pacheco was asked if the establishment of the Parliamentary Commission of Inquiry on January 8th, to investigate the terrorist attacks carried out by Bolsonaro supporters in Brasília earlier in the year, could hinder the progress of the fiscal framework bill sent to Congress by Finance Minister Fernando Haddad (PT). “Definitely not. I consider these matters independent of the responsibilities of Congress; we have a sense of urgency and relevance regarding the fiscal framework issue. Nothing can affect the progress of the fiscal framework. There is already a prediction from the Speaker of the House, Arthur Lira, about the possibility of voting on it by May 10th. Once it reaches the Senate, we will also ensure this urgency, and we will forward it to the Constitution and Justice Committee. The president of the CCJ, Senator Davi Alcolumbre, has already assured me that he will ensure the swift consideration of the fiscal framework. So we will vote on the fiscal framework under any circumstances. The tax reform as well. This is obviously a more complex reform, requiring more discussion. The fiscal framework will be approved first, and then we will also dedicate ourselves to the tax reform.”