“Imbecility”: Minister of Labor criticizes BC strategy to contain inflation
The Minister of Labor, Luiz Marinho, criticized on Wednesday (26) the strategy of the Central Bank to use high interest rates to control inflation, classifying the measure as an “imbecility”.
The statement was made after Marine was asked about the reduction in formal job creation in January. For the minister, the deceleration of the labor market is directly related to the Selic rate elevation cycle, currently at 13.25% per year.
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The minister also minimized rumors about a possible crisis in the economic team and stressed that Haddad’s work is recognized within the government
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The Selic Basic Interest Rate is currently 13.25% per year and the Central Bank has already indicated a new 1 point increase in March
One of the central bank’s main tools to contain inflation is the increase in the basic interest rate, which makes credit, discourages consumption and reduces investments, reducing pressure on prices.
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Confronted with this argument, Marinho replied: “It is an imbecility. If the BC enters this market, it will inhibit the growth of the economy, ”said the minister.
Central Bank monetary policy has been a frequent target of Lula government criticism, which advocates Selic’s faster reduction to boost economic growth and the labor market.
