Lula da Silva Criticizes Brazil's Central Bank Over High Interest Rates

Brazilian President Luiz Inacio Lula da Silva renewed his criticism of the central bank's high benchmark interest rate, calling it 'unreal' given the current annual inflation rate of 4%. He emphasized that inflation is under control and linked the recent weakness of Brazil's currency to speculation.

Brazilian President Luiz Inacio Lula da Silva on Friday renewed his criticism of the country's central bank, saying in an interview it was "unreal" for the benchmark interest rate to stand at 10.50% while annual inflation runs at around 4%.

"I understand the interest rate is a tool to control inflation, but inflation is now controlled and within the target range," Lula told a local radio station, also linking the recent weakness of Brazil's real currency to "speculation".