Lula asks for surveillance of BC by agents who can take Campos Neto out of office

President Luiz Inácio Lula da Silva (PT) said, this Tuesday (7), that he does not want to create confusion with the BC (Central Bank), but demanded vigilance from ministers Fernando Haddad (Finance) and Simone Tebet (Planning) and of senators of the Republic.

Haddad and Tebet are members of the Central Bank president, Roberto Campos Neto, on the CMN (National Monetary Council), a body that can forward to the President of the Republic a request for the removal of the head of the monetary authority in the event of “proved and recurrent insufficient performance to the achievement of the objectives” of the autarchy, in accordance with the law that created the BC’s autonomy.

It is up to the Senate to approve this change of names, if it receives the request of the Chief Executive.

Lula’s speech comes in the wake of a series of criticisms of the institution, since the Copom (Monetary Policy Committee), last week, maintained the basic interest rate at 13.75% per year for the fourth consecutive time, in the first meeting since President Lula took office.

“At that time, it was easy to blame the President of the Republic. Not now. The Central Bank is to blame. Now, it is the Senate that can change the President of the Central Bank,” he said.

“I hope the [Fernando] Haddad is following, Simone [Tebet] is following and that he himself is following the situation in Brazil”, he added.

The president’s statement was given during breakfast with journalists from the “independent and alternative media”, which took place at the Planalto Palace. On January 12, he had already held a first meeting with the press.

Lula demands that the senators provide for the Central Bank and President Roberto Campos Neto, since he himself has no control over the leader’s mandate. This has occurred since the monetary authority became independent, in 2021—as the PT criticizes.

“I think the Senate has to be vigilant. Because I remember how much criticism I received from Fiesp every time I raised interest rates, I remember how many senators made speeches against me when I raised interest rates. charge me, the Presidency of the Republic, on the interest rate, they have to charge them”, said the petista.

The Chief Executive also referred to Roberto Campos Neto as a “citizen”, said he had only been with him once and indirectly highlighted his proximity to the government of his predecessor, Jair Bolsonaro (PL).

“And let’s see how BC behaves. I only have a month of living with him [RCN]he had, I don’t know how long, living with the [Paulo] Guedes,” he continued.

As shown to Sheetthose around the representative consider that Campos Neto has burned bridges with the PT government and reduced his chances of influencing the nomination of new directors of the autarchy.

Lula has been intensifying his criticism of the Central Bank’s actions in recent weeks. The tension in the relationship with the head of the monetary authority comes after the BC has kept interest rates at a high level for the fourth time in a row and amid an escalation in Lula’s criticism of the institution.

The assessment of members of the Lula government is that Campos Neto was inept with Copom’s decisions and the tone of the last communiqué —in which he signaled the maintenance of the Selic at the current level for longer. In the view of Planalto allies, there was a confusion between BC autonomy and isolation.