Senate committee approves invitation for Campos Neto to explain interest rates

The Senate Economic Affairs Committee (CAE) approved this Tuesday (27) four requests inviting the president of the Central Bank (BC), Roberto Campos Neto, to explain to the committee the reasons for maintaining the current basic interest rate, the Selic rate, at 13.75% per annum. This is the second time this year that Campos Neto has been invited to speak on the subject at the House. As it is an invitation, not a summons, Campos Neto is under no obligation to attend. Two days after the Central Bank’s Monetary Policy Committee (Copom) maintained, for the seventh consecutive time, the current Selic Rate, the leader of the government in the National Congress, Senator Randolfe Rodrigues (Sem Partido-AP), filed a request to hear the BC president. “It is unacceptable that Campos Neto continues to sabotage Brazil and the Brazilian people with the highest real interest rate in the world! Who is interested in impeding the economic growth of our country?”, questioned the government leadership. Randolfe added that he does not rule out other measures against Campos Neto. This Monday (26), opposition senators Plinio Valério (PSDB-AM), Rogério Marinho (PL-RN) and Ciro Nogueira (PP-PI) also presented applications to hear Campos Neto. In the request, Marinho, who is leader of the opposition in the Senate, argued that the Central Bank has already clarified the reasons for the current basic interest rate. “Even with the recent elucidation of the matter by President Campos Neto, we defend the debate of the problem, as well as additional clarifications that may be necessary”, he explained. The president of the Central Bank has been the target of criticism from the government, trade union centrals and employers’ organizations due to the maintenance of the current basic interest rate. Last week, Senator Ana Paula Lobato (PSB-MA) even asked the National Monetary Council (CMN) to dismiss the president of the Central Bank, “due to his proven and recurrent insufficient performance to achieve the institution’s objectives”. This Tuesday (27th), Copom minutes indicated that interest rates may start to drop as of August. When opening the CAE session today, the chairman of the Commission, senator Vanderlan Cardoso (PSD-GO), celebrated the minutes of the Central Bank. “We hope that the positive perspectives materialize and the Selic starts the expected reduction process”, he said.

Agência Brasil