Durigan promises technical rigor in names for the BC and reinforces gradual fiscal adjustment
Minister of Finance says he has not yet spoken to Lula about recommendations to the Central Bank and states that nothing discussed justifies the market's fear.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM INFOMONEY · 2 MIN
The Minister of Finance, Dario Durigan, stated on Tuesday (3 November) that the next appointments to the Central Bank board must follow criteria of "technical rigor". According to InfoMoney, which cites Reuters, the statement was made in an interview at a time when the market is closely monitoring the composition of the monetary authority.
Durigan said he has not yet spoken to Lula about new appointments to the BC. He also stated that the president has not had an agenda with other economists, as this helps to show the stage at which the process of choosing names is at.
According to the minister, the appointments must bring together "different profiles", without losing sight of the technical requirements. For those who follow interest rates, the composition of the board matters, because it is there that decisions about the base rate are discussed.
In the same interview, Durigan stated that, in the conversations he had with Lula, nothing was discussed that justifies fear of the market. The message, therefore, is one of tranquility, in a topic that usually causes noise among investors.
The center of the speech, however, is the defense of a gradual fiscal adjustment, reinforced by the minister. For an editorial line that defends fiscal responsibility, the word "gradual" calls for attention: the pace of adjustment is what separates promise from execution and usually weighs on interest rates and exchange rates.
There are still no details about which names will be nominated and when. For now, what is known are the criteria declared by the minister and the fact that dialogue with the president on the topic has not yet taken place.
What changes for the investor
Without predicting quotes, the point of attention is the combination between the composition of the BC board and the fiscal trajectory. So far, Durigan's speech points to the continuity of technical criteria and a gradual adjustment, and not to ruptures, which favors predictability for those who operate interest rates, the dollar and the stock market. This reading is not a recommendation to buy or sell: checking the names indicated and the tax measures that come later should guide decisions.
Automatically translated from Portuguese.
