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Lula Renews Criticism Of BCB's Campos Neto

BRAZIL
  • In an interview with SBT on Monday night, President Lula repeated his criticism of BCB President Campos Neto over the central bank’s stance on interest rates. Lula said that there was no explanation for the SELIC rate to be at 11.25% other than the stubbornness of Campos Neto and that the stance is contributing to the delay in economic growth.
  • The BCB is next due to meet on March 20, when a further 50bp interest rate cut to 10.75% is widely expected. Beyond that, analysts continue to see the SELIC rate ending the year at 9.0%, as highlighted in the latest BCB Focus survey earlier this morning, with the rate falling to 8.5% by end 2025.

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