Brazil Central Bank’s Harsh Statement Upset Lula, Economic Team
- Bank’s statement caught Lula’s team by surprise, people said
- President has been stepping up criticism of central bank
This article is for subscribers only.
Brazil’s Luiz Inacio Lula da Silva and members of his economic team were dismayed by the harsh statement published by the country’s central bank this week, three people with knowledge of the matter said, a signal that tensions between the independent central bank and the left-wing president are far from over.
The document, published Wednesday to justify the decision by the bank’s board to hold the key interest rate at 13.75%, did not reflect the softer message that central bank chief Roberto Campos Neto had conveyed in meetings with representatives of the finance and planning ministries, as well as members of Lula’s political team, the people said, asking for anonymity because the discussion isn’t public.