SAO PAULO (Reuters) – Brazil’s government expects monetary policy next year not to be as restrictive as in 2023, an economy ministry official said on Monday, stressing that a new fiscal framework proposed by the administration would help bring interest rates down.
Economic Policy Secretary Guilherme Mello noted that central bank chief Roberto Campos Neto had praised the proposed framework, despite him saying the new fiscal rules would not mechanically affect interest rates.
“From the moment the monetary authority recognizes the quality of the fiscal framework, the prospect of monetary easing emerges,” Mello said in an interview with Globo News.
(Reporting by Eduardo Simoes; editing by Steven Grattan)