Central Banks

Brazil Debt Is the Source of High Rates, Central Bank Chief Says

  • Campos Neto counters President Lula criticism on rates
  • Brazil inflation does have demand pressure, he added
Roberto Campos NetoPhotographer: Andressa Anholete/Bloomberg
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Brazil’s central bank chief said high levels of public debt are to blame for interest rates steady at a six-year high, countering President Luiz Inacio Lula da Silva’s criticism of monetary policy and appeals for a rate cut.

If government debt were low, “the cost of money would be cheaper for everyone,” Roberto Campos Neto said during a TV interview with Brazil’s CNN.