“Have to work a little more”

Minister is in the US and said that the North American country and Europe are “sleeping on point” in the fight against inflation

Minister Paulo Guedes (Economy) said this Wednesday (12.Oct.2022) that the IMF (International Monetary Fund) has to “talk less bullshit” and “Work more”. He is in Washington, United States, to attend meetings of the entity.

The information is from the newspaper O State of São Paulo. The minister criticized calculations by the international organization that indicate that Brazil could have spent half of what was paid on benefits during the covid-19 pandemic.

Brazil had a primary deficit of 10% of GDP (Gross Domestic Product) in 2020 with the payment of emergency aid. Guedes stated that the IMF should stop “pull the ear of Brazil” and alert the United States and Europe, which are “sleeping at the wheel” controlling inflation and designing policies to avoid a global economic downturn.

“Six months ago, everyone was saying that Brazilians are going hungry and then the IMF says that spending could be lower”Guedes told reporters.

The minister spoke at a JP Morgan conference. Guedes is in the US for annual meetings of the IMF and the World Bank.

“The IMF has to talk less nonsense and work a little more to alert the Americans, the Europeans, right?”said.

Brazil registers deflation for 3 consecutive months. Inflation dropped to 7.17% in the 12-month period through September. The United States will release the CPI (Consumer Price Index) on Thursday (13.Oct.2022). Until August, the annual rate was 8.3%.

The BC (Central Bank) ended the cycle of hikes in the basic rate, the Selic. It is at 13.75% per year. The high served to bring inflation to the target, in the range of 2% to 5%. The target is not expected to be met in 2022.

The US has interest rates ranging from 3.25% to 3.50%. The Fed (Federal Reservethe US Central Bank) has signaled that it will still have to raise rates until the end of the year to control inflation.

According to Guedes, Brazil is growing more and its inflation is lower. After the criticism of the international fund, the minister pondered: “I don’t think the IMF is unwilling towards Brazil, but it is technically wrong”.

Regarding public spending during the pandemic period, he said that he has “very proud” expenditures that made it possible to reduce poverty rates in Brazil.

According to the IMF, emergency aid covered almost 1/3 of the population and benefits were 3 times higher than the social standard and more than half of the national minimum wage. Read the full report (3 MB, in English).

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