Haddad predicts falling interest rates "shortly" and 2026 "much better"

Finance Minister Fernando Haddad said on the morning of Monday (22) in Sao Paulo, who believes that the interest rate should begin to fall into a “consistent and sustainable way” soon. Although it has not given expectations or deadlines for this to happen, The minister said he believed that next year, “things will improve a lot”.

“I think interest will start to fall and will fall, in my opinion, consistently and sustainably,” he said. “I don’t know when, but at some point – with the inflation indicators we are reaping, with the dollar on the level that is and with everything that is happening – I think things will improve a lot from next year. And I think it will be a sustainable trajectory,” he added.

Last week, The Central Bank Monetary Policy Committee (COPOM) announced the maintenance of the Selic Basic interest rate at 15% per year. SELIC is the main instrument of the Central Bank for inflation control, which is braked with the earnings of the credit and the slowdown of the economy.

In the official statement, the Copom justified the maintenance of Selic at this level for the uncertainty of the external environment, “due to the conjuncture and economic policy in the United States.”

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Participating this morning of the Macro Day event, promoted by Banco BTG Pactual and held in São Paulo, The minister argued that the interest rate discharge not only refers to the tax issue in the country.

“There are other things that explain interest in Brazil. Many other things. The inspector is very important, but it is not the only explanation for this level of interest,” he said.

Still during the event, The minister considered that the fiscal policy not only depends on the executivebut it is also the responsibility of the judiciary and the National Congress. Haddad also stressed that it is necessary to create political conditions for the tax framework to be strengthened.

“For him [arcabouço] Being strengthened, you need to create the political conditions of sitting with parliamentarians and saying, ‘We will need to adjust some rules, otherwise the framework won’t be sustainable in the long run,’ ”explained the minister.