Finance Minister Fernando Haddad stated that Brazil does not need a recession to lower inflation, advocating for continued economic growth. He recognized the need for the central bank to take action, following a significant interest rate hike aimed at controlling inflation levels.
Brazil’s Finance Minister Fernando Haddad expressed his belief that a recession is not a prerequisite for reducing inflation in Brazil. He asserted that the economy can continue to grow while preventing significant increases in consumer prices. Additionally, Minister Haddad acknowledged that the central bank must implement measures necessary to restore inflation to its target level. This statement follows a recent decision from policymakers to increase the benchmark interest rate by 100 basis points for the third consecutive time, raising it to 14.25%.
In summary, Finance Minister Fernando Haddad’s remarks highlight a non-recessionary approach to managing inflation in Brazil. He emphasizes the potential for economic growth alongside effective price control measures, while recognizing the essential role of the central bank in achieving targeted inflation levels. The recent interest rate hike reflects ongoing efforts to stabilize the economy and manage inflation effectively.
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