President Luiz Inacio Lula da Silva and his economic team were irked by some highly-anticipated comments from the Brazilian central bank that failed to clearly signal the beginning of the rate cut cycle they’ve been clamoring for.

The bank’s post-meeting statement, published by its board late on Wednesday to explain its decision to maintain the benchmark Selic at 13.75%, did away with a pledge to resume rate hikes if needed but refrained from signaling when they may start to fall.

“This isn’t a problem for the government only, it’s a problem for all society,” Lula told reporters on Thursday in Rome, where he met with Pope Francis.

The leftist president, who since taking office in January has been stepping up his criticism of the monetary authority led by Roberto Campos Neto, said he’s now putting pressure on Brazilian senators — the ultimate guarantors of the central bank’s autonomy that was signed into law in 2021.

“The senate is responsible for holding him accountable,” Lula said, referring to Campos Neto. “I believe this person plays against the Brazilian economy.”

While Lula was in Europe for a visit to Italy and France and only reacted to Brazil’s rate decision on the following day, members of his economic team raised their rhetoric against the central bank as soon as its statement was published last night.

“The decision makes no sense in this positive economic moment in which the government is demonstrating commitment to fiscal matters,” Institutional Relations Minister Alexandre Padilha said in a text message. “Lula’s government and congress have done their part to put Brazil’s interest rates on a downward path.”

Read More: Lula, Brazil’s Senate Step Up Pressure for Rate Cut Signal

The economic team considers that the central bank not only failed to clearly signal a needed monetary easing cycle but also didn’t properly acknowledge government efforts to dispel uncertainty about Brazil’s fiscal outlook — one of the reasons cited by policymakers to justify high interest rates, according to two officials with knowledge of the discussion.

The central bank, who has also come under fire from business leaders and top politicians, seems to be willing to declare war on the government, said the officials, requesting anonymity to discuss internal matters.

The central bank declined to comment.

The rate decision came on the same day that a group of more than 50 businesspeople who participate in Lula’s council of social economic development released a letter complaining about the monetary authority.

“We express our concern about the need for the central bank to start a process of rate cuts,” they wrote. “Without it, Brazil will not be able to resume growth.”

--With assistance from Maria Eloisa Capurro.

(Recasts story with Lula’s comments.)

Author: Martha Beck, Simone Iglesias and Daniel Carvalho