Brazil's Finance Minister Dario Durigan said on Thursday that bringing interest rates down remains the country's "big challenge," while arguing that public finances in Latin America's largest economy are balanced.
His remarks came after Brazil's central bank a day earlier cut its benchmark interest rate by 25 basis points for a fourth consecutive meeting, taking it to 14.00%, but left its next moves open.
Despite the easing cycle that began in March, Brazil's real interest rates remain among the highest in the world.
"We will do everything within our reach to bring interest rates down," Durigan said in an interview with GloboNews.
High borrowing costs, coupled with persistent market concerns over the government's commitment to curbing public spending growth, have weighed on the country's debt financing costs.
Brazil's gross debt as a share of gross domestic product has risen by more than 10 percentage points since President Luiz Inacio Lula da Silva took office in January 2023.
Durigan acknowledged that improving fiscal policy was key to lowering borrowing costs and added the government would remain committed to that effort if Lula wins re-election in October.
He stressed, however, that the government is not discussing changes to the minimum wage indexation formula or decoupling social benefits from current adjustment rules, two measures many economists view as key to slowing mandatory spending growth.
The minister also said there was no risk of the Treasury failing to meet its debt obligations.
