The Brazilian Central Bank’s Monetary Policy Committee decided to maintain its benchmark interest rate at 10.5 percent, with all nine members in agreement. In the previous meeting, there was a split vote, revealing a divide between members appointed by Bolsonaro and Lula.
This decision adds a political layer to the process, with Lula criticizing the Central Bank for high borrowing costs. Supporters have accused Chairman Campos Neto of a hidden agenda, especially after he accepted honors from a potential political rival.
Lula’s remarks have intensified the debate, questioning the autonomy of the Central Bank. The decision to keep rates unchanged comes amid renewed government criticism, as both sides clash over economic policies and inflation control.