Haddad Criticizes Interest Rates, Promises 'State BNDES' for Industry Investment

Fernando Haddad, the candidate for governor of São Paulo, has reiterated his support for establishing a state-level development bank, modeled after the national BNDES, to accelerate infrastructure investments within the state. Haddad, a former Finance Minister, also voiced strong criticism of the current interest rate levels, describing the monetary policy as "out of sync" with economic realities.

According to Haddad, the prevailing interest rates are stifling new infrastructure investments. He argued that the country would be in a significantly better economic position if the Central Bank had initiated a cycle of basic rate cuts earlier. He noted that society is increasingly vocal about the imbalance between interest rates and the nation's economic situation.

These remarks were made during an industry forum attended by presidential and São Paulo gubernatorial candidates. Haddad emphasized the positive impact of the tax reform, which was approved during his tenure as Finance Minister, particularly for São Paulo. He pointed out that no other state has suffered more from fiscal wars than São Paulo and criticized rival candidate Flávio Bolsonaro for promising to suspend aspects of the reform if elected.

Haddad also touched upon the ongoing transition period for the tax reform, which extends until 2033. The forum provided a platform for candidates to discuss economic policies, with Haddad advocating for increased investment in infrastructure and a more favorable interest rate environment, while also defending the recently implemented tax reform.