Haddad's argument to reinforce the appeal for an interest rate cut.

Finance Minister Fernando Haddad (PT) reiterated his support for lowering the benchmark interest rate on Tuesday, the 4th. The Central Bank's Monetary Policy Committee will decide on Wednesday whether to change or maintain the Selic rate, currently at 15% per year — the expectation is that the directors will keep the current rate.

At the opening of the Bloomberg Green Summit event in São Paulo, Haddad said he did not know when the Copom (Monetary Policy Committee) would cut the Selic rate, as he is not a member of the committee. "If that were the case, I would vote for the cut, because it doesn't sustain a 10% real interest rate."

The minister declared that no matter how much pressure there is from banks to keep the Selic rate at 15%, the rate will have to fall. "There's no way to sustain a 10% real interest rate with inflation hitting 4.5%. Are you going to sustain a 15% interest rate? In the name of what?", he emphasized.

According to Haddad, Brazil is in a much better situation than "domestic analysts" assume. He also stated that he is "allergic to inflation," but called for reasonableness in combating rising prices.

“We will have the lowest inflation in four years, the lowest unemployment in the historical series, and the highest growth since 2010,” he emphasized. “Even so, the number of people rooting against the country is astonishing.”

The financial market's forecast for the IPCA — considered the official inflation rate — has increased from 4.56% to 4.55% in 2025. The target set by the National Monetary Council is 3%, with a tolerance of 1.5 percentage points above or below.

For 2026, the inflation projection remained at 4.2%. For 2027 and 2028, the forecasts are 3.8% and 3.5%, respectively.