Haddad: Current Selic is momentary; We will not keep 8%, 9% real interest lifetime
Finance Minister Fernando Haddad said the current high level of Selic is momentary. He made the statement during an interview with GloboNews when asked about the trajectory of public debt.
“Are you projecting the debt trajectory with this Selic, imagining that this Selic is eternal? This Selic is a momentary to correct an inflationary problem that has domestic reasons, but has external reasons as well. We are correcting,” he said.
He considered that real interest rates will not remain at 8 or 9%, as this could suffocate the economy. “This is not the horizon that is placed. I talk to the financial market, with the productive sector, I make an audience every week with businessman, every week. I go to Sao Paulo, open my schedule to those who are asking for an audience to explain a problem, ask for help in overcoming another problem,” said Haddad, adding that “the same concerns as these people.”
Haddad: ‘I’m a friend of these people (market) because I have no enemies’
In the interview, Haddad also defended the reform for the income proposed by the government
Haddad: Galipolo is technically prepared to bring inflation to the goal with intelligence
Haddad was asked about a statement made by himself in the morning, saying that he did not expect Galipolo to give a “wooden horse”
The minister also said to receive those who are satisfied with the country. “I get the entrepreneurs who are making money in Brazil, who are satisfied with Brazil, who are investing in Brazil. So, I understand the financial market, but I can not just look at the financial market, I have to have a slightly broader vision than is happening,” he said.
Haddad recognizes the sensitivity of the financial market and pointed out the destructive potential when investors’ confidence is lost. “If there is such a problem, we have to rebuild bridges, we have to talk more and we will do that. Now, denying the result, so I consider it not very cool,” he said, alluding to the measures adopted by the government and the fiscal results obtained so far.
