Lula Defends Brazil’s Central Bank Interest Rates Policy

In a speech at Petrobras regional headquarters in the Greater ABC region of São
Paulo, Brazilian President Luiz Inácio Lula da Silva commented last week’s
decision by Central Bank’s Monetary Policy Committee (Copom) to raise the
government’s benchmark interest rate (Selic) by 0.25%.

Lula observed that inflation “gets out of control,” if the government does not have a good economic policy to keep it stable.


“It is not the government that controls [inflation]. The prices of certain products go up, because some businessmen want to make more money,” he affirmed.

The President availed himself of the opportunity to respond to criticisms of the interest rate hike.


“They picked a trifle to criticize. But who remembered that on Friday we obtained Senate approval for a project that assures all pensioners loans at low monthly interest rates? Before this law, the poor guy couldn’t even enter the bank. For society this is very important,” he argued.

Last Wednesday the Copom decided to raise the annualized benchmark interest rate to 16.25%, after five months of holding it steady at 16%.


The decision was based on the committee’s assessment of the prospects for the trend in inflation.


According to the Copom, the decision represents the start of a process to introduce moderate adjustments in the benchmark interest rate, so that the trend in inflation does not adversely affect the recovery of real income, thus preserving sustained economic growth.

President Lula also used the speech to celebrate the positive numbers registered by the Brazilian economy in recent weeks, and he said that now the country will begin to “reap the fruits of what was sowed.”

He criticized the increase in oil prices, which, in the President’s view, favors the interests of the rich countries.


“There is pressure around the globe for oil prices to rise. This doesn’t harm the United States, Japan, and the wealthier exporting countries. It hurts the poor countries of Latin America and Africa. We need more humanism in our daily lives. We need to be more solidary with the rest of the world,” he contended.

Agência Brasil

Tags:

You May Also Like

India Interested in Investing in Brazil’s Ethanol Industry

India is interested in importing hydrated alcohol from Brazil to supply its fleet of ...

11 Days in New York with Brazil’s Best and Latest Screen Productions

A newly restored Eastmancolor print of Marcel Camus’s Orfeu Negro (Black Orpheus) and Breno ...

Brazil starts ambitious biodiesel program

Brazil Invests US$ 5.7 Million in Biodiesel Quality Control

Brazil is going to invest US$ 5.7 million to prepare 32 laboratories that will ...

Only Education Can Bring Brazil Out of Its Backwardness

At the recent Pan American Games, the world saw the flag of Brazil raised ...

Without Justice’s Support Brazil Asks Foreign Help to Punish Dictatorship’s Crime

The president of Brazil, Luiz Inácio Lula da Silva said it was "worthwhile" to ...

Brazil-US: Will Obama Mention the “BRICs” or just the “RICs”?

When President Barack Obama assumes office on January 20 can we expect to hear ...

Construction Works in Brazil Up 13% to US$ 328 Billion

The investment in Brazil on construction works was US$ 328 billion last year, according ...

Brazil Thrilled to Have Venezuela Aboard at Mercosur to Deal with EU

A Mercosur/European Union negotiators meeting scheduled for early October in Brazil has been postponed ...

Brazil’s Trade Surplus Grows 33% Reaching US$ 44 Billion

From the beginning of the year through last week, Brazilian companies exported US$ 44 ...

Brazilian Airline TAM

Brazil and Portugal Leading Airlines Share Code and Air Miles Program

The Brazilian and the Portuguese leading airlines, TAM and TAP respectively, announced that they ...