It’s Time Brazil Adopts a More Flexible Monetary Policy, says BNDES Chief

“Now that inflation is under control in Brazil, we can adopt a more flexible monetary policy. That is what is going to happen,” said Guido Mantega, president of the National Economic and Social Development Bank (BNDES) and former Minister of Planning in Lula’s Administration.

In his view, the big challenge that Brazil faces now is to achieve sustainable growth with the government deficit under control, fiscal balance, inflation under control, and a surplus in current accounts.


Mantega denied that the economic model adopted by Lula’s Administration, based on fiscal balance and control of inflation, is conservative.


He observed that the Administration’s objectives are the revitalization of industrial and agricultural policy, a new international trade posture, and a competitive role in the international arena.


“Monetary policy must become more flexible, and interest rates must fall. The exchange rate will respond, moving upward, and we shall thus have an equation favorable to economic development.”


Although he didn’t want to specify dates, Mantega guaranteed that this process is already underway.


He recalled that in his most recent public presentations, he indicated that interest rates had reached their limit and would not rise any further.


Mantega judged that monetary policy will allow the Brazilian economy to accelerate in the second half of this year, maintaining this momentum in 2006.


ABr – www.radiobras.gov.br

Tags:

Ads

You May Also Like

Brazil’s Foreign Exchange Flow at US$ 2.9 Billion Deficit

The balance of dollar inflows and outflows from Brazil, known as the foreign exchange ...

TAM, Brazil’s Flag Carrier Airline, Joins Star Alliance

Brazilian flag carrier airline TAM announced its entry into the Star Alliance, the largest ...

Brazil’s Barbecue Alchemist Is Bringing His Art to the US

Neither doctor, nor astronaut, nor fireman. The childhood dream of Ricardo Penna was always ...

Best-seller Books, Plays and Movies

By Brazzil Magazine PLAYS RIO Os Ratos do Ano 2030 (The Mice from the ...

The Embarrassment But Mostly the Pride of Being a Brasília’s Brazilian

I left Recife in 1970 and lived outside Brazil until 1979. When I found ...

Scientists Want Closer Cooperation Between Brazil and Arabs

South American and Arab countries have pledged to increase cooperation in science and technology. ...

After Meeting Fidel, Brazil’s Lula Says Cuban Is Fit Enough to Lead Again

Brazilian President, Luiz Inácio Lula da Silva, before leaving Cuba, where he went for ...

Mercosul grows up

The trial period is over for Mercosul, the trade agreement between Brazil and its ...

Baby Clothes Maintain a Brazilian City Alive. Now They Want to Sell Overseas

The baby clothes producers from the Local Productive Arrangement (LPA) of Terra Roxa, city ...

Brazil’s Petrobras Has Big Plans to Take on the World

Brazilian oil giant Petrobras expands investments and seeks joint venture in the US. Nestor ...