Lula Blasts Central Bank Chief as ‘Adversary’ After Rate Hold

(Bloomberg) -- Brazil President Luiz Inacio Lula da Silva called central bank chief Roberto Campos Neto a “political and ideological adversary,” escalating his criticism of the monetary authority after policymakers halted a yearlong easing cycle this week.

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The real briefly dipped following the comments before rebounding to trade at 5.44 against the dollar.

The leftist leader also said that the weakening of the country’s currency, which has plummeted against the dollar in recent weeks amid growing fiscal worries and questions about the central bank’s commitment to inflation, is not a major concern for his government.

“This speculative nervousness that is happening will not affect the seriousness of the Brazilian economy,” he said in a local radio interview.

Lula previously said it was a “pity” that the central bank’s board unanimously voted to hold the benchmark Selic at 10.5% on Wednesday. Ahead of the decision, the president renewed his criticism of Campos Neto and the central bank, accusing him of acting politically and hurting the economy with high interest rates.

--With assistance from Leda Alvim.

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