Speaking at an event hosted by newspapers O Globo and Valor Economico, Haddad said he intended to present the new fiscal framework to Lula this week, and also expects the president to decide on nominees for two central bank director positions in the coming days. "If we get the fiscal framework right, this has a much more important impact (than inflation targets)," he said when asked about possible changes to inflation targets, which were widely speculated earlier this year. He noted other countries adopting inflation target systems didn't use the January-December calendar for that purpose as Brazil does, adding the central bank has been conducting technical discussions about it for two years.
Haddad also added there are challenges posed by the collapses of the Silicon Valley and Signature banks in the U.S., but stressed that harmonizing fiscal and monetary policies would help Brazil "navigate rough international seas." Haddad said he has been talking to central bank governor Roberto Campos Neto about the topic, though it was still unclear whether the bank would have to take any action due to the effects of the episode on emerging economies. The minister also predicted that a tax reform on consumption would finish being voted on by October, reinforcing the government foresees a neutral result for tax revenue. He added the government should soon present 17 bills to improve credit markets while releasing new regulations for the gold market. (Reporting by Marcela Ayres; Editing by Louise Heavens, Alison Williams and Aurora Ellis)
