Haddad: there is room for the start of the interest rate cut cycle in the country

“Another very important expense with respect to the federal budget in relation to the debt is the real interest rates. Also little is considered. This year, the estimate of real expenses with interest is around R$740 billion. what a curiosity: unjustified spending fuels real interest because it is the imbalance in public accounts promoted by tax spending that causes the Central Bank to raise interest rates due to the unsustainability of the public debt trajectory”, said the minister, in a public hearing at the Chamber of Deputies deputies.

In Haddad’s evaluation, the debate on the reduction of interests does not affect the authority and autonomy of the Central Bank, responsible for establishing the adopted percentage.

“We are not questioning the monetary authority, from the point of view of its power. I am pondering what is best for Brazil. With the measures taken so far, yes, there would be room for a gesture of more confidence in the Brazilian economy, without there being any mishap in inflation”, he argued.

Upcoming topics

According to the minister, the discussion on ecological transition and on resources for education is in the portfolio’s perspective. “Once the tax rule and tax reform stage is over, we will have an avenue to discuss what is strategic for the country. We will be able to discuss the issue of ecological transition, we have to re-discuss the issue of Brazilian education. Yesterday illiteracy indicators were released of extremely worrying children,” he said. “It is not possible to continue living with a growth rate of 1% per year on average. This year we should grow close to 2%, but, in my opinion, it is little. We have everything to grow above the world average”, he added.