Copom, new tax rule and trip to China; see what should move the week

Three themes will dictate the course of the agenda policy It is economical next week. One of them is President Luiz Inácio Lula da Silva’s trip to China, Brazil’s main economic partner.

The initial expectation was that around 30 agreements would be signed in various areas during the trip. Now the Planalto Palace halved the priority topics.

At the meeting with the Chinese authorities, issues on the bilateral agenda will be addressed, including trade, investment, reindustrialization, energy transition, climate change, and world peace and security.

New fiscal rule and Copom

The other theme is the probable announcement of the new tax rulewhich, according to the Chief Executive himself, should happen before going to the Asian country.

Not least important, the Monetary Policy Committee (Copom) of the Central Bank (BC) will meet between the 21st and 22nd to decide the future of the basic interest rate (Selic) in the country.

There was great expectation that the new tax framework was released before the Copom meeting, which could influence the decision of the monetary authority to anticipate a cut in the Selic — even if the movement was just a signal in the minutes of the meeting.

For disclosure to take place, however, at least one more meeting of the Budget Board will still be needed next Monday (20). The board is formed by the ministers of the Civil House, Finance, Planning and Management and other members of the economic team.

After that, it will be up to President Lula to decide whether or not to announce the new fiscal rule before the Copom meeting, said Finance Minister Fernando Haddad on Friday (17).

As a result, uncertainty about the announcement of the new framework in time for the Copom meeting has increased.

PT publishes acts against Campos Neto

What is really already right are the demonstrations for the departure of Roberto Campos Neto from the presidency of the BC. The acts, which were disclosed on the PT’s official website, are scheduled for next Tuesday (21), the first day of the Copom meeting.

Recently, Campos Neto was the target of criticism from President Lula himself and from PT President Gleisi Hoffmann.

Civil House and Treasury discuss imbroglio in INSS interest

It was left to Haddad and the Minister of the Civil House, Rui Costa, to find a solution for the interest ceiling on the payroll loan for INSS beneficiaries.

After the National Social Security Council (CNPS) reduced the payroll interest for INSS beneficiaries from 2.14% per month to 1.70%, several banks suspended the granting of the loan.

The proposal to reduce interest rates came from the Minister of Social Security, Carlos Lupi, who, according to Rui Costa, did not consult the Civil House or even the Treasury.

Now, Haddad and Costa should meet on Monday (20th) in order to find a solution to the imbroglio created by Lupi, reported O Globo.