Brazilian Finance Minister Fernando Haddad stated that President Luiz Inacio Lula da Silva will not pursue unorthodox policies in light of next year's presidential election, where he is regarded as the leading left-wing candidate.
"We will stay the course, meeting our targets and pursuing our goals because this is the right path. We won't make anything up; Lula is not one to take exotic measures for electoral reasons," he affirmed.
At an event hosted by Arko Advice in Sao Paulo, Haddad noted that this year could experience a global depreciation of the dollar, even if U.S. interest rates do not decrease as anticipated. He remarked that such a scenario would benefit Brazil's central bank in its efforts to control inflation.
Following a recent interest rate increase of 100 basis points to 14.25% and indications of a smaller hike in May, Haddad described current rates as being at an "ultra-restrictive level" that will help cool economic activity.
Recent economic indicators have raised questions about the pace of the slowdown, especially as figures from February exceeded expectations. Haddad also mentioned that formal employment is expected to remain strong, with Brazil's largest economy predicted to benefit from a robust agricultural crop, leading to increased hiring this year.