• Categories
  • Archives

Brazil’s Central Bank Chief Promises Lower Interests

The president of Brazil’s Central Bank, Henrique Meirelles, says that the higher
primary account surplus and the lower ratio between debt and GDP will mean lower
interest rates in the medium term for Brazilians.

Meirelles declared that the adjustments to ensure growth in 2005 were being made in monetary and fiscal policy.


“The adjustments will ensure sustainable growth. Not just for 2005, but for many years. Growth has been strong this year and will continue in 2005,” he said.


Meirelles pointed out that fiscal policy cannot substitute monetary policy, although both are essential for stability, reducing the country’s vulnerability and achieving consistent investments.


It is important to keep the two policies finely tuned so Brazil can have lower interest rates and sustainable growth, he said.


According to Meirelles, the decision to raise the basic interest rate (Selic) was correct (it went from 16% to 16.25%) because it will support growth.


He added that the Selic could rise again even with the higher primary account surplus target (which went from 4.25% of GDP to 4.5%).


“The message we have is clear: Brazil is growing strongly. Businessmen who want to maintain their market shares will have to invest, even with higher interest rates,” said the Central Bank president.


Agência Brasil
Translator: Allen Bennett

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazil’s Outlook Upgraded from Stable to Positive by Fitch

Brazil's long-term foreign and local sovereign Issuer Default Ratings outlook has been upgraded, today, ...

Landless Movement in Brazil

To Brazil’s Landless Lula Is an Impostor and the Bankers’ Best Friend

As Brazil approaches the 10th anniversary of the April 17, 1996, Eldorado dos Carajás ...

Brazil Plated Jewelry Fair Shows Latest Trends for Humans and Pets

Plated jewelry made in Brazil extends far beyond earrings, necklaces and rings. Nowadays, the ...

Brazil’s Red Tape and Corruption Prevents It from Being Main Entry to Mercosur

All the bureaucracy and corruption the world knows about that plagues Brazilian life and ...

Why Can’t Brazilian Generals Admit Their Guilt in Human Rights Violations?

Two days before Christmas, when bells were already ringing, President Lula heard a distant ...

Brazil’s Baby Incubator Leader Is in 60 Countries

Medical-hospital and laboratory equipment manufacturer Fanem plans to install an assembly line in one ...

Brazil Talks About a Revolution in Exports After Russia’s Embargo on US’s and EU’s Produce

Russia’s announcement about its embargo on agriculture products from the US and Europe opens ...

Brazil Might Appeal to Higher Court over Marathon

The president of the Brazilian Olympic Committee, Carlos Arthur Nuzman, says he will appeal ...

Brazil’s Zero Hunger Food Experts Get a Week of Training

Encouraging healthy eating habits among Brazilians is the purpose of courses in the cities ...

Brazilians Feel 7.5 Peruvian Earthquake

An earthquake of approximately 7.5 on the Richter scale which hit Peru, yesterday was ...