By Marcela Ayres and Ricardo Brito
BRASILIA, Feb 9 (Reuters) - Brazil's Finance Minister
Fernando Haddad agrees with President Luiz Inacio Lula da
Silva's view that interest rates need to drop, but is focussed
on the new government's agenda rather than taking on the central
bank, an Economy Ministry source said.
Leftist Lula again raised his concerns about Brazil's
benchmark interest rate level, which stands at 13.75%, during a
closed political meeting on Wednesday with Haddad, Luciano
Bivar, a federal deputy who was present, told Reuters.
But Haddad had focused instead on the new Brazilian
government's economic agenda, highlighting a new fiscal
framework to be presented in April and tax reforms, Bivar said.
"The President showed discomfort over the central bank's
actions, but Haddad preferred to focus on the government's
agenda with Congress, the creation of the fiscal framework and
tax reform," Bivar said.
Representatives for Lula and Haddad had no immediate comment
on their discussions during the political meeting.
Haddad's stance of keeping out of the debate stirred by
Lula's attacks on the central bank does not mean he disagrees
with the leftist president's views, the Economy Ministry source
told Reuters, speaking on condition of anonymity.
Lula has repeatedly criticized Brazil's benchmark interest
rate level as a major drag on the country's economic growth and
has indicated that it should aim for higher inflation.
Haddad's economic policy secretary has previously said the
issue is not being discussed in the ministry.
When they kept Brazil's benchmark interest at a six-year
high last week, central bank policymakers signalled that
interest rates could remain unchanged for longer than markets
expected due to fiscal risks under Lula.
But when the minutes from the rate-setting meeting later
mentioned the government's fiscal plans presented by Haddad as
possibly mitigating risks, he went public to say that the bank's
tone was now "more friendly".
A second official at the economy ministry said Lula's
criticisms of the central bank are not a topic of internal
discussion, despite concerns that they generate market
uncertainty and hinder efforts to lower interest rates.
When Haddad met with senators from Lula's Workers Party (PT)
on Tuesday, the interest rate debate was not discussed, two
sources who asked not to be named told Reuters.
One said that the government's allies in Congress should
push ahead with requests for central bank governor Roberto
Campos Neto to appear before Congressional committee hearings.
But the sources added that there was no government plan to
try to remove Campos Neto.
The central bank had no immediate comment.
(Reporting by Marcela Ayres and Ricardo Brito; Editing by
Alexander Smith)