Sao Paulo (EFE) what the government does about the issuing entity.
The demonstration brought together about twenty members of the bank workers’ union and the Central Única de los Trabajadores (CUT), the largest union in the country, linked to the Workers’ Party (PT) of President Luiz Inácio Lula da Silva.
The unions also demanded the resignation of the president of the Central Bank, Roberto Campos Neto, who was appointed by the now ex-governor Jair Bolsonaro and cannot be dismissed because the body enjoys full autonomy.
Lula is openly pressuring the Central Bank to lower interest rates, which are at 13.75%, the highest level since 2016, to try to avoid the cooling of the economy, which according to official calculations will grow less than 1 % this year.
Lula questions monetary policy in Brazil
In recent weeks, the president has come to describe the high level of rates as a “shame” and has referred to the autonomy of the Central Bank as “nonsense”, statements that caused turbulence in the currency market.
The president of the Central Bank said this Monday, during an interview with a television program, that he would also like to lower rates, but he cannot because “interest is determined by the market.”
Campos Neto was also opposed to revising the official inflation target upwards, which for this year is set at 3.25% with a tolerance margin of 1.5 percentage points.
By deciding to keep rates at 13.75% at the end of January, the Central Bank argued that long-term inflationary risks remain in the Brazilian economy, partly due to the uncertainty caused by the fiscal policy of the Lula government.
Inflation closed 2022 at 5.79%, a value above the target but well below the maximums reached by prices last April, when they accumulated increases of 12% year-on-year.
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