Lula’s risky challenge to the Brazilian central bank
President can nominate board members and increase inflation target as he pushes for lower rates
A tug-of-war between Brazilian president Luiz Inácio Lula da Silva and the Central Bank of Brazil (BCB) is threatening to undermine recent progress towards lower inflation.
Many analysts and former officials think the government’s strategy of confrontation with the central bank will end up damaging the BCB’s credibility. Thus, they fear Latin America’s largest economy may end up recording higher inflation, interest rates, and lower growth in the years to come.
Since Lula returned to power on
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