Brazil’s Chief of Staff Scolds Inflation-Mongers


The head of the Presidential Civilian Advisory Staff, Minister José Dirceu, criticized some people’s concern over inflationary pressures. “Many people think that there is no inflationary pressure in Brazil, that there is no need to raise interest rates. I myself expected that interest rates would be down to 13% in December.

“With the country growing again, I was even more convinced of this. When we look at the inflationary pressures, which come from government-regulated prices and food prices, which are subject to oscillations, I don’t see where there is inflationary pressure capable of jeopardizing control of inflation in the country,” he affirmed.

Dirceu also called for an alliance between the masses and entrepreneurs to maintain economic growth. In his view, the country has some growth problems “that are not resolved solely by the government, the Parliament, or the party; it is necessary for all of society to participate,” he concluded.


In its August 18 meeting Brazil’s Central Bank’s Monetary Policy Committee (Copom) decided to maintain the annualized benchmark interest rate (Selic) at 16%.


This was the fourth straight time this year that members of the committee have voted to keep the Selic unchanged at 16%. This time the vote was unanimous, based on their evalutation of the outlook for trends in inflation.

The Selic is the interest rate the government pledges to pay when it borrows money on the domestic market. The rate is determined each month by the Copom.

In calculating the Selic, the Copom takes into account various factors, among them, future inflation prospects (the next 30 days) and momentary rising or falling price tendencies in the economy (past inflation).

International economic conditions are also considered. Whether there is a glut or scarcity of money on the international market (international liquidity).


Also, whether there is a lot of money in circulation on the domestic market or not and the financial requirements of government accounts (how much cash the government has available to pay its debts).

Agência Brasil

You May Also Like

Overcrowding and Lack of Maintenance Leave 5 Dead in Rio’s Charming Trolley Car

The Santa Teresa trolley car, one of Rio de Janeiro’s postcard attractions, had an ...

Extraordin Ary

Extraordin Ary First great name of Brazilian music, Ary Barroso, the author of “Aquarela ...

Brazilian Industry Stops Growing

Brazilian industrial production was stable in April in comparison with March. In relation to ...

Steel in Bulk Production Grows 7% in Brazil

The production of steel in bulk in Brazil was 3.14 million tons in August, ...

Urban Man

Since the last census in 1991, the population of Brazil has increased by 1.6 ...

Brazil Will Become a World Power Despite the Big Powers, Says Lula

Brazilian President Luiz Inácio Lula da Silva reaffirmed that one of his government’s priorities ...

Women for Sale. Made in Brazil.

Human trafficking is the utter objectification of human beings. Brazilians are preferred in Spain, ...

Converted Tanker Boosts Brazil Offshore Oil’s Output

Petrobras, Brazil's government controlled multinational oil corporation, took a major step this week to ...

Overpopulated

Brazil started the century with 17 million people and ended it with an estimated ...

The best race

A tie is not good enough for someone who defends his own country even ...