Monica de Paul central bank delay in cutting interest rates subject

Analysts expect the interest rate to start falling to 13.5% annually in August.

In an interview with Natusa Neri, economist Monica de Paul assesses why the Central Bank of Brazil is “lagging behind” in the rate-cutting process, taking into account the domestic situation, and says that an “extremely cautious” attitude could harm the country. economy country.

Monica still adds that the rate cut should not happen this week. She highlights the need for advance communication, via Coboom’s minutes, and the “muddy scenario” that central banks around the world face in light of inflationary resistance in developed countries.

“The central bank is part of the government,” he notes. “I think that sometimes gets forgotten in Brazil.” “In an effort to maintain its independence, the central bank just decided to take a somewhat extreme stance, putting its foot on this negative rate of 13.75%, and making sure that it would only change the rate when it suits it, so as not to give the impression that it was cutting the interest rate because there Pressure from other parts of the government. In Brazil, this was of great importance, and ultimately a great misfortune for us.”