April 13 (Reuters) - Brazil's Finance Minister Fernando
Haddad said on Thursday that the central bank has an opportunity
to lower interest rates to help boost economic growth as fiscal
and monetary policies are converging.
"I want to believe that the central bank has a window of
opportunity that I hope will be taken advantage of so that
Brazil can think about economic and sustainable growth," Haddad
told journalists in China, where he is accompanying President
Luiz Inacio Lula da Silva on a high-profile visit.
Haddad's remarks come a day after central bank governor
Roberto Campos Neto said that while inflation has decreased,
persistent pressures remain, stressing that the demand-driven
component of inflation in the country remains "relatively
strong."
Despite frequent criticism from leftist Lula and his
political allies, policymakers have kept the interest rate
unchanged at a six-year high of 13.75% since September.
Haddad noted that economists from various schools are
advocating for the beginning of a trajectory of lowering
interest rates, as the capital market is stalled and waiting for
measures from the monetary authority.
The minister also highlighted that everything is aligning
towards harmonizing fiscal and monetary policies, citing factors
such as cooling inflation, a stronger Brazilian currency, and a
future interest rate curve decline.
"There are clear signs," he added.
Haddad also mentioned that Lula wants multilateral banks
such as the BRICS New Development Bank (NDB) to serve as
catalysts for the use of currencies other than the dollar and
euro in trade.
"The possibility of transactions in local currencies is a
concrete possibility that has already happened with reciprocal
credits and could advance," he stated.
(Reporting by Marcela Ayres; Editing by Steven Grattan and
Sharon Singleton)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.