Lula says Brazil will 'grow with responsibility' as markets recover

Reuters · 01/06/2023 14:47
Lula says Brazil will 'grow with responsibility' as markets recover

- Brazil's leftist President Luiz Inacio Lula da Silva said on Friday it was possible for the country to grow with responsibility, trying to calm market jitters about the potential for rampant social spending under his watch.

Lula's comments came as he kicked off his first cabinet meeting in Brasilia aiming to instill discipline among the formed team after various communication hiccups drove Brazil's currency BRBYBRL= and stock index .BVSP down 3.8% and 5%, respectively, in his first days in office.

"It is possible for us to grow again with responsibility and income distribution," said Lula, who assumed office on Jan 1.

On Friday, the Brazilian real was up roughly 1.2% against the dollar, while the Bovespa rose 1.4%. They had already pared some losses in the previous two sessions.

Lula wanted to dispel fears of a more interventionist stance in the economy. He also echoed comments from Planning Minister Simone Tebet, a centrist former senator who said a day earlier the government would have multiple lines of thoughts on the economic agenda.

"We are a single-minded government, with a single philosophy," Lula said.

Analysts said Tebet's remarks helped boost markets. Also helping investor sentiment were comments from Lula's chief of staff, who said the government was considering any plans to revise economic reforms, and the incoming CEO of Petrobras PETR4.SA who ruled out interventions in fuel prices.

(Reporting by Lisandra Paraguassu; Writing by Gabriel Araujo, Editing by Angus MacSwan)

((; +55 11 5644 7745;))