The Minister of Finance, Fernando Haddad, declared that he does not see much uncertainty in the short-term horizon for the trend of monetary policy, responding to the warning issued in recent days by the Central Bank by tightening the tone of his statements.
In an interview with CNN Brasil recorded Tuesday and broadcast this Wednesday, Haddad said that with the likely interest rate reduction moves in the United States and Europe this year, the Brazilian BC will not be able to maintain the rate basic at a high level. .
“I don’t see much uncertainty on the short-term horizon, I think, especially from an international point of view, from mid-year onwards we can have good news,” he said.
At a meeting last week, the Monetary Policy Committee (Copom) announced a 0.50 percentage point reduction in the Selic rate, to 10.75% per annum, and shortened its guidance on future cuts citing increased uncertainties , stating that its board expects a cut of the same intensity only at the next meeting.
The minutes of the meeting show that part of the BC Board assesses that a reduction in the pace of base interest rate cuts may be necessary if uncertainties remain high in the future.
For Haddad, the international cycle will be favorable to Brazil and domestic inflation will not show a negative trend.
“Getting over the food issue with the start of the harvest, we will have good inflation data in the coming months. I don’t see much concern in the core sectors (inflation), especially in services, continues to converge,” he said.
PETROBRAS
In the interview, Haddad also said that the government is working to encourage investment in Petrobras’ green transformation, stressing that he does not interpret this as executive intervention in the company.
The minister stressed that it is the oil company controller’s right to promote a path towards ecological transition.
After the company withheld extraordinary dividends that could be allocated to shareholders, a decision taken by President Luiz Inácio Lula da Silva, Haddad specified that the analysis of the issue is technical.
“An issue has been highlighted which, depending on the size of the dividends, could compromise the company’s investment plan. It is being discussed now in the technical area and in the board… It is a solution that will arrive technically”, he specified .
Source: Terra
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