Brazil’s Finance Minister Fernando Haddad emphasized that a recession is not essential to reduce inflation. He highlighted the potential for ongoing economic growth while managing consumer price increases and recognized the actions of the central bank following recent interest rate hikes.
Brazil’s Finance Minister, Fernando Haddad, stated on Thursday that he does not believe a recession is necessary to reduce inflation in the country. He expressed confidence that Brazil’s economy could continue to grow while managing to control consumer price increases. Furthermore, he recognized the importance of the central bank’s actions in restoring inflation to its target levels, especially after policymakers raised the benchmark interest rate for the third consecutive time by 100 basis points, bringing it to 14.25%.
In summary, Minister Haddad posits that Brazil can achieve inflation control without entering a recession. He affirms the central bank’s critical role in this process, especially in light of recent interest rate increases aimed at curbing inflation. The government’s stance reflects a commitment to maintaining economic growth alongside price stability.
Original Source: www.tradingview.com
