Monica de Bolle: "The Central Bank's board of directors is made up of people from the financial system"
According to the economist, the influence of the financial market on the Central Bank dates back to the Temer administration, hence the maintenance of high interest rates.
247 - In an interview with TV 247, economist Monica de Bolle, senior fellow at the Peterson Institute for International Economics, spoke about the dispute between Lula and the president of the Central Bank, Roberto Campos Neto, regarding interest rates and their impact on economic activity.
According to her, after President Dilma Rousseff's administration, the profile of the Central Bank's board of directors changed completely.
“Instead of having a board of directors composed of in-house employees and people who came from outside, possibly from academia, we ended up with a board that was markedly made up of people with a very relevant background, even if academic, in the financial market. So, the influence of the financial market on the Central Bank has been present since the Temer government and has worsened until we reached the point where a large part of the bank's board of directors is made up of people from the financial system,” the economist stated.
Monica emphasizes that the statement by the president of BV, Campos Neto, that all the bank's decisions "are unanimous" demonstrates that "disagreements do not exist in the Brazilian Central Bank, and this constitutes a problem."
"What is happening in the Brazilian economy is far from obvious. It's impossible to say that interest rates should be at this level. There should be a debate within the Central Bank itself, possibly with disagreements regarding the direction of interest rates," he emphasized.
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