UPDATE 1-Brazil's Lula criticizes central bank after rate decision

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds more details, Lula's comments) March 23 (Reuters) - Brazilian President Luiz Inacio Lula da Silva on Thursday said the country's central bank must pay the price for high interest rates, a day after the monetary policy committee, known as Copom, held the benchmark rate at a six-year high. "I, as president of the republic, cannot keep discussing every Copom report. I cannot. Let them pay the price for what they are doing. History will judge each one of us," Lula told journalists after an event in Brazil's Rio de Janeiro state.


His remarks come after the central bank on Wednesday kept interest rates unchanged at 13.75% for the fifth consecutive policy meeting, pointing out rising inflation expectations, without giving indications of a potential monetary easing ahead. Lula also said that Brazil needs to create jobs and he sees no explanation for the current level of interest rates in the country. "I say every day: there is no explanation for any human being on planet Earth for Brazil's interest rate to be at 13.75%. There is no explanation."
(Reporting by Maria Carolina Marcello; Writing by Peter Frontini; Editing by Brendan O'Boyle)

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