The PT party in Brazil is positioning itself as both the government and the opposition, blaming the Central Bank for economic problems while it has held power for much of the past two decades.
In an election year, the PT party (Partido dos Trabalhadores) is leveraging its longstanding strategy of presenting itself as both the ruling party and in opposition to external forces. Despite occupying the presidency for 16 out of the last 23 years, the party attempts to cultivate an image of opposition, deflecting blame for economic challenges onto the Central Bank. This tactic appears to be a concerted effort to distance the party from the consequences of its own policy choices.
The recent resolution from PT's National Directorate highlights this strategy, criticizing the Central Bank for acting against an elected mandate and for deepening the 'financialization' of the economy, which is perceived to hinder public investments. The party's demands include an immediate reduction of the Selic rate, currently at an exceptionally high 15% per year, and a revision of the inflation target to align it with economic growth and job creation aspirations. This framing is intended to resonate with voters by portraying the party as champions of economic reform while side-stepping accountability for past governance decisions.
Moreover, the belief that allowing for a higher inflation target could simplify downward adjustments in interest rates is criticized as overly simplistic. The message seems to suggest that the party is rallying public support on the premise that a more lenient inflation benchmark would facilitate economic recovery, even as it unsuccessfully confronts the potential pitfalls of such an approach. Overall, this situation implies a complex political dynamic within Brazil as the PT navigates its dual role at a time when it must defend its record while seeking re-election.
