Economy Minister Paulo Guedes said today that the issue of inflation is already “addressed”. Today, the IBGE (Brazilian Institute of Geography and Statistics) announced that the IPCA (Broad National Consumer Price Index) accumulated in 12 months reached 10.25%.
According to Guedes, in a context of global inflation acceleration, it is “natural” that, in a country where prices already vary around 4%, the index ends up rising to something “around 9%”.
To argue this, he mentioned that in the United States, where inflation is usually close to zero, price variation is close to 5%.
The minister cited the approval of the formal autonomy of the Central Bank as an essential measure to contain the rise in prices.
In the most recent interest rate hike, the Copom (Monetary Policy Committee) took the basic interest rate from the historic low of 2% to the current 6.25% per year.
“We see many reelections based on the exploration of economic cycles, through the Central Bank. We depoliticized the Central Bank,” said Guedes, who participated today in an event promoted by Itaú.
The Economy Minister also stated that he needs to increase Brazilian participation in the NDB (New Development Bank) to face loans for a “green growth” program to be announced during COP-26 (United Nations Conference on Climate Change , but which is struggling because of the spending ceiling. The conference will take place in November in Glasgow, Scotland.
“I can’t transfer $1 billion from a bank in New York to increase the NBD’s capital. It’s a financial account, I just need to change from one bank account to another. I can’t do that because it would break the ceiling in Brazil. It’s pathetic,” Guedes said.
In a second moment, the minister said that “US$ 2 or US$ 3 billion” would be necessary for the capitalization of the so-called Bank of the Brics.
Guedes again said he will announce a $2.5 billion program at COP-26 for the green economy.