PT leader criticizes BC autonomy, but says Lula will not remove Campos Neto

The leader of the Workers’ Party bench in the Federal Senate, Fabiano Contarato, published on his social networks this Wednesday (8), criticizing the autonomy of the Central Bank and said that President Luiz Inácio Lula da Silva “was deprived of influencing a of its central elements: monetary policy”.

However, he stated that Lula is not considering removing Campos Neto, president of the Central Bank, and that his mandate will be respected.

The day before, Lula told journalists that it is up to the Senate to be “vigilant” with Campos Neto’s actions, and that the House should charge him on the interest rate. On top of this statement, Contarato says that, “by alluding to the role of the Senate, [Lula] it only refers to what is in the law, without manifesting any political intention in that sense”.

The BC president has been criticized in recent days by the President of the Republic, who claims that the economy’s basic interest rate should be reduced. On February 1st, the Monetary Policy Committee (Copom) of the Central Bank maintained the Selic rate at 13.75% per annum.

Still according to the post on Twitter, Contarato justified that in a democracy, the bureaucracy cannot replace the fundamental political decision, as it is not subject to the legitimizing and corrective control of the polls.

“The subject is sensitive and requires understanding in favor of the country, to disarm the inherited fiscal and monetary trap, allowing the economic recovery. We have in our favor dialogue, respect for institutions and the leadership of President Lula”, wrote the leader of the PT in the Senate.

¼ The President of the Republic is politically responsible for the country’s economy, but, with the autonomy of the Central Bank, he was deprived of influencing one of its central elements: monetary policy. He answers for the ends, deprived of an essential means.

— Fabiano Contarato (@ContaratoSenado) February 8, 2023