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Weekly Report - 20 June 2024 (WR-24-24)
BRAZIL: Interest rate debate fuels tensions
Brazil’s President Luiz Inácio Lula da Silva launched a stinging attack on the president of the central bank (BCB), Roberto Campos Neto, this week for failing to lower interest rates decisively. The following day the ruling left-wing Partido dos Trabalhadores (PT) filed a lawsuit against Campos Neto, who it accused of political bias. This escalation in the long-running tensions between Lula and Campos Neto, who was appointed by far-right former president Jair Bolsonaro (2019-2023), is threatening to undermine the credibility of the BCB, with the question mark hanging over its autonomy providing cause for concern for investors.
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