During a recent conference held by BTG Pactual, Brazil's Finance Minister Fernando Haddad highlighted the significance of the Selic interest rate being maintained at 2% during Jair Bolsonaro's presidency. He argued that this low rate contributed to soaring inflation and a declining economic environment, which played a crucial role in Bolsonaro's defeat in the 2022 elections. Haddad pointed out that with inflation reaching 13%, it was inevitable that public debt would suffer, emphasizing the negative impacts of the monetary policy adopted at that time.

Haddad's remarks also shed light on how the low interest rates, combined with rising foreign exchange rates, led to an inflation spike. He questioned how a government can approach elections with such poor economic indicators, particularly with inflation in double digits. The cumulative inflation rate for Brazil in 2022 surged to nearly 13%, significantly impacting the cost of living for its citizens and highlighting the economic challenges faced by everyday Brazilians.

Furthermore, Haddad criticized election-year measures aimed at controlling prices, such as the reduction of fuel taxes. He asserted that these policies were insufficient and ultimately ineffective, arguing that they failed to address the underlying economic issues. His analysis reflects broader concerns regarding fiscal and monetary policy in Brazil, particularly as the country navigates its post-Bolsonaro political landscape.