SAO PAULO (Reuters) -Brazilian Finance Minister Fernando Haddad said any debate on increasing public spending is frozen until the government ensures fiscal sustainability, according to an interview with Record TV published on Tuesday.
Haddad stated that no new spending increase would be welcome unless it is essential.
The minister also voiced concern over the central bank’s monetary policy, calling the country’s benchmark interest rate “very, very restrictive” and well above projected inflation.
The central bank last week raised the benchmark rate by 25 basis points to 15%, the highest since 2006, and signaled an extended pause ahead.
The minister argued that the recent rate hikes took place amid an inflationary scenario – particularly regarding food prices – that is being solved.
The full interview will be broadcast by Record News later in the evening.
(Reporting by Andre Romani; Editing by Natalia Siniawski and Kylie Madry)
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