Overview

• After the Copom kept Brazil’s benchmark rate at 15% this week and signaled a prolonged hold, Fernando Haddad reiterated that the level is above what current conditions require.
• The finance minister said there is room for interest cuts and argued that high borrowing costs are restraining stronger economic growth.
• Haddad emphasized that Brazil’s public debt is audited daily by technical teams across the Central Bank, the TCU and the National Treasury.
• He said he speaks frankly with Central Bank President Gabriel Galípolo but acknowledged that monetary policy decisions rest with the bank.
• Galípolo welcomed the ministry’s polite commentary on monetary policy and called it legitimate for the finance chief to offer his analysis.