Haddad says there are ‘improvements to be made’ in inflation targets, signals imminent end of calendar year

Finance Minister Fernando Haddad again defended on Thursday that the central bank should start pursuing an inflation target not tied to the calendar year and signaled that this change, to be made within the National Monetary Council (NCC) , can take place in the June collegial meeting.

“There is improvement to be made and perhaps the opportunity is now,” Haddad said, during an interview with the CNN program “Caminhos com Abilio Diniz”. The interview was recorded in the afternoon and broadcast in the evening.

Asked about the possibility of changes to the inflation targets, defined by the CMN, Haddad said that Brazil is one of the two countries in the world that adopt the inflation targeting regime and that have the calendar year as the horizon for achieving the target . The other country is Turkey.

“Europe has a target of 2%. Up until a month ago we were celebrating the drop in inflation from 9% to 8.5%”, Haddad pointed out.

According to him, a 3% target — as in the case of those established by the CMN for the years 2024 and 2025 — must be continuous and not limited to a calendar year.

Earlier this month, Haddad had already strongly defended the timetable change to the inflation targeting regime, arguing that maintaining an ongoing target avoids disorganizing the economy at times when hitting the target imposes huge costs. elevated to activity.

At its June meeting, the CMN will define the inflation target for 2026. The expectation is that the collegial may also approve the modification of the deadline for achieving the target. The possibility is not viewed negatively by the financial market.

The CMN is made up of Haddad, the president of the Central Bank, Roberto Campos Neto, and the minister of Planning and Budget, Simone Tebet.

TAX EXPENSES

Haddad also reiterated during the interview that the government’s intention is to cut tax exemptions by a quarter. According to him, the weight of these benefits, for the public finances, corresponds to about 6% of the gross domestic product (GDP).

“We will cut 1.5% of tax spending. We will review a quarter of tax spending. With this, even increasing some expenditures, such as the minimum wage, we will reach the primary result,” Haddad said, asked if it is feasible to close the deficit primary.

The minister also said that Congress is “ready to vote on tax reform”. According to Haddad, after the phase of consolidation of the state and public accounts, the government should enter, already in the second half of this year, into a medium and long-term agenda, especially in issues aimed at the ecological transition.

Haddad said the government has a series of 100 actions organized in the area of ​​ecological transition that will be launched by the end of President Lula’s term and could draw the world’s attention to Brazil.

Source: Terra

Rose

Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.