{"id":35781,"date":"2023-05-05T14:24:45","date_gmt":"2023-05-05T14:24:45","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/brazils-haddad-backs-longer-term\/"},"modified":"2023-05-05T14:30:55","modified_gmt":"2023-05-05T14:30:55","slug":"brazils-haddad-backs-longer-term","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/brazils-haddad-backs-longer-term\/","title":{"rendered":"Brazil’s Haddad backs longer-term target for inflation, no talk of goal change"},"content":{"rendered":"

BRASILIA (Reuters) – Brazilian Finance Minister Fernando Haddad said on Friday that he favored taking a long-term view of inflation and that the central bank could begin cutting interest rates.<\/p>\n

He added, however, that the government could not pre-empt any decision on changing the inflation targets set by the National Monetary Council consisting of himself, the planning minister, and the central bank governor.<\/p>\n

“I think continuous inflation targeting is much better than looking at the calendar year,” Haddad said in an interview with CBN radio.<\/p>\n

The National Monetary Council will set the annual inflation target for the coming three years at its June meeting, while also reaffirming its previously established targets.<\/p>\n

President Luiz Inacio Lula da Silva has advocated for higher targets and a less restrictive monetary policy. The central bank, meanwhile, has suggested the discussion may have raised inflation expectations, requiring interest rates to remain at 13.75%, the highest they have been in the current cycle.<\/p>\n

Brazil’s inflation rate slowed more than expected in the year to mid-April, reaching its lowest point since late 2020.<\/p>\n

Haddad reiterated criticism of the central bank, saying the bank could already begin cutting rates. He said next year’s inflation projection was “very moderate.”<\/p>\n

Following media reports naming his executive secretary Gabriel Galipolo as a potential nominee for the central bank’s board, the minister said the government would announce the picks once a decision has been made.<\/p>\n

However, he did acknowledge Galipolo could be a candidate for various government positions. <\/p>\n

Amid government efforts to prevent an escalation of the public debt, Haddad said measures would be taken until the accounts were balanced. <\/p>\n

He said he had asked the Senate to vote on a measure regarding the taxation of the transfer price of multinational companies and said he expected proposed fiscal rules to be voted on by the Lower House in May and a tax reform to be voted on in June. <\/p>\n

Haddad also said the government “has everything” to establish a successful thesis in a high-profile tax case in the Supreme Court, potentially increasing revenues by nearly 90 billion reais ($18 billion) annually.<\/p>\n

The case has already been ruled on by a lower court.<\/p>\n

($1 = 4.9842 reais)<\/p>\n

\n

(Reporting by Marcela Ayres; Editing by Toby Chopra and Hugh Lawson)<\/p>\n

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BRASILIA (Reuters) – Brazilian Finance Minister Fernando Haddad said on Friday that he favored taking a long-term view of inflation and that the central bank could begin cutting interest rates. He added, however, that the government could not pre-empt any decision on changing the inflation targets set by the National Monetary Council consisting of himself, […]<\/p>\n","protected":false},"author":8,"featured_media":35782,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1216],"tags":[],"class_list":["post-35781","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-economy"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportEconomy\/tagreuters.com2023binary_LYNXMPEJ440IV-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/35781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=35781"}],"version-history":[{"count":1,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/35781\/revisions"}],"predecessor-version":[{"id":35783,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/35781\/revisions\/35783"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/35782"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=35781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=35781"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=35781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}