Finance Minister Fernando Haddad stated that a recession is unnecessary to control inflation in Brazil. He believes the economy can grow without uncontrolled consumer price increases. He acknowledged the central bank’s measures, including a recent increase in the benchmark interest rate to 14.25%.
Brazil’s Finance Minister, Fernando Haddad, expressed his conviction that a recession is not necessary to reduce inflation within the country. He emphasized the possibility of continued economic growth alongside a controlled inflation environment. Furthermore, Haddad recognized the importance of the central bank’s role in addressing inflation and reaching its target. His remarks followed the central bank’s recent decision to implement a third consecutive increase of 100 basis points to the benchmark interest rate, which now stands at 14.25%.
In summary, Minister Fernando Haddad of Brazil posits that lowering inflation does not require an economic downturn. He advocates for ongoing growth while urging the central bank to take appropriate measures to meet inflation targets, especially in light of the recent interest rate hikes. This perspective may influence Brazil’s economic policies moving forward.
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