the proposal would be unveiled this month, possibly even before the central bank's rate-setting decision on Wednesday.
However, in an interview with local news website Brasil
247, Lula said it wouldn't make sense to announce the fiscal
framework and then travel to China.
"What I have been calling attention to is that we have to do
things very carefully because we cannot lack resources for
education and health," said Lula, emphasizing that he would talk
about the issue with Haddad during the trip. Lula will be in
China from March 26-30.
Reacting to the postponement, interest rate futures closed
higher at the short end of the yield curve.
Lula's chief of staff, Rui Costa, said in an interview with
TV GloboNews on Tuesday the framework would be announced in
mid-April.
The possibility of the new rules limiting investments is
already drawing criticism from members of leftist Lula's Workers
Party, even though their format is not yet known.
During the interview, Lula also criticized the country's
central bank, saying that an interest rate of 13.75% - its
current level - is "irresponsible," adding he will continue to
fight the current level to stimulate the economy.
Brazil's central bank has been holding its benchmark
interest rate at a six-year high since September and, according
to economists polled by Reuters, is expected to maintain it
unchanged at the Wednesday meeting.
(Reporting by Pedro Fonseca and Luana Maria Benedito; Writing
by Peter Frontini and Marcela Ayres; Editing by Steven Grattan,
Marguerita Choy and Lincoln Feast.)
