Lula Criticizes Brazil's High Interest Rates

Brazilian President Luiz Inacio Lula da Silva criticized the country's high interest rates, stating they are 'the only thing wrong' with Brazil, especially as inflation remains controlled at around 4%. Following a recent 100-basis-point increase that brought the central bank's rate to 12.25%, Lula indicated potential policy changes, emphasizing the need for government intervention. He defended the recently unveiled fiscal measures awaiting Congress approval, arguing that they are fiscally responsible despite market skepticism. Lula's comments come amid the Brazilian real's decline against the U.S. dollar and concerns over rising public debt. He also highlighted the central bank's role in exacerbating fiscal issues through its monetary policies. Lula has signaled his intent to influence future central bank appointments to reflect his economic vision.