Lula Criticizes Central Bank's Interest Rate Decision

Brazilian President Luiz Inacio Lula da Silva criticized the central bank's recent decision to keep interest rates unchanged at 10.50%, stating it was a 'shame' and arguing that high borrowing costs hurt the Brazilian people. He emphasized a desire to invest in production rather than financial speculation.

Brazilian President Luiz Inacio Lula da Silva said on Thursday it was "a shame" that the country's central bank decided to keep interest rates unchanged this week, renewing his criticism of the bank for what he sees as excessively high borrowing costs.

The South American country's central bank interrupted a monetary easing cycle on Wednesday by holding the Selic benchmark interest rate at 10.50% in a unanimous decision of its monetary policy committee. In an interview with local radio station Verdinha, Lula said that a president never interferes with the interest rate-setting committee, but argued that the Brazilian people are the ones who lose the most from the decision.

"The central bank's decision was to invest in the financial market and speculators. We want to invest in production," he said.