Lula Advocates for Monetary Independence Amid Falling Approval

Brazilian President Luiz Inacio Lula da Silva supports non-interference in monetary policy and Petrobras' pricing strategy, amid concerns over Brazil's public debt and his slipping approval ratings. He affirmed central bank chief Gabriel Galipolo's role while addressing potential diesel price hikes and inflation worries.

BRASILIA, Jan 30 (Reuters) - Brazilian President Luiz Inacio Lula da Silva emphasized the importance of government non-interference in monetary policy, amidst concerns over the nation's fiscal health and a dip in his approval ratings.

Addressing reporters, Lula assured that state-run oil giant Petrobras has sole authority over its pricing strategies. Despite market anxieties, he expressed confidence in central bank chief Gabriel Galipolo's decisions, following a recent interest rate hike to 13.25%.

Lula's comments came as speculation about a potential diesel price increase by Petrobras grew, and following poll results showing his disapproval ratings rising due to inflation concerns, particularly in food prices. The Brazilian real and Bovespa stock index responded to Lula’s statements.