LATIN AMERICA | 02-08-2023 14:19

Brazil’s Lula says he expects rate cut, but renews Central Bank criticism

President Luiz Inacio Lula da Silva expects Brazil's central bank to initiate an interest rate-cutting cycle as he has demanded, while also reiterating his criticism of bank chief Roberto Campos Neto, questioning his understanding of the Brazilian people and who he serves.

Luiz Inacio Lula da Silva | Bloomberg

President Luiz Inácio Lula da Silva expects Brazil’s Central Bank to begin cutting interest rates on Wednesday, saying he “can only hope” that policymakers launch the easing cycle he has demanded for months.

Analysts widely anticipate that the Central Bank will begin lowering the benchmark Selic from its six-year high of 13.75 percent when its monetary policy committee concludes its August rate decision meeting later in the day.

The leftist leader, however, reiterated his longstanding criticism of bank chief Roberto Campos Neto, saying that he “does not understand the Brazilian people.”

“I do not know who he is serving, but it isn’t Brazil,” Lula said in an interview with international reporters at the presidential palace.