Lula says he smells a cut in interest rates, but denies pressure on Galípolo

BRASÍLIA, 18 Dec (Reuters) – President Luiz Inácio Lula da Silva said this Thursday that he smells a cut in the basic interest rate soon, at the same time that he stated that he will not put pressure on the president of the Central Bank, Gabriel Galípolo.

‘In the same way that we smell rain, I am smelling that interest rates will soon start to fall’, said Lula at a press conference in Brasília.

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‘Now, the Central Bank has autonomy, it’s important to remember, and I will never put pressure on Galípolo to take whatever action it has to take. It’s him who has to make the decision, and I hope he’s smelling the same air of desire that I’m smelling now, and if he does that it will be good for him, it will be good for me, it will be good for Brazil, it will be good for the industry, it will be good for unemployment, it will be good for salaries and it will be good for everyone.’

In the interview, Lula also said he had ‘100% confidence’ in Galípolo and stated that he was certain that he would provide a great service to the country as head of the BC.