Brazil’s Industry Leader Calls Interest Rates ‘Absurd’

As the Brazilian Central Bank released the minutes of the last meeting of the Monetary Policy Committee (Copom) and signaled that it intends to continue maintaining the country’s basic interest rate (Selic) at 19.75% per year, the São Paulo manufacturers federation (Fiesp) hit the ground running with a strong call for a gradual reduction of the Selic.

“Our real interest rate is absurd. In other countries it is between 1% and 2%. We are not demanding that it be cut in half tomorrow. But we do insist on a responsible, gradual, precise reduction,” declared the Fiesp president, Paulo Skaf.


Backing his argument with numbers, Skaf pointed out that first half GDP growth was a weak 0.3%, with industrial output down 1%.


“This year we have to pay US$ 57 billion in interest. And it seems that is just fine. The risk is that we keep on throwing away a fortune in interest payments,” concluded Skaf.


Sustainable Growth


Raul Velloso, an economist who specializes in public accounts, says Brazil must abandon “flight-of-the-chicken growth syndrome,” and achieve permanently sustainable growth.


“The big challenge is to reach higher levels of growth and maintain them. That is the only way to create jobs and income,” he declared.


Velloso points out that with GDP growth of almost 5% last year, Brazil was able to create jobs.


“But this year the indicators are not so good and not as many people are finding work. We have to wait and see if this is just a tendency,” he concluded.


Agência Brasil

Tags:

You May Also Like

Brazil’s Latest Fad: the Narghile

The table pipe, which is very appreciated in the Arab countries, became popular in ...

Lula Is About to Fulfill His Wish of Getting His Good Friend Chavez in Mercosur

On July 4, 2006, representatives of Argentina, Brazil, Paraguay and Uruguay met in Caracas ...

Brazil Congress Wants US Pilots Indicted for Murder in Air Accident

Brazil's Inquiry Parliamentary Commission (CPI) on the Brazilian Air Traffic has concluded its report ...

Varig’s Eleven: 11 Bidders Interested in Bankrupt Brazilian Airline

Eleven companies have shown interest in acquiring the routes, planes and offices of Brazil’s ...

Falling Brazilian Real Leads Argentina to Fear 2001 Debacle Encore

The powerful industrial lobby of Argentina is warning that the current real exchange rate ...

Brazil’s Vehicle Sales Down 10%, Industrial Output 3% Down for the Year

 Compared to the same period last year, sales of vehicles in April were down ...

150 Brazilian Army Engineers to Rebuild Haiti’s Infrastructure

A Brazilian Army’s engineering company, integrated by 150 military officers, will embark on June ...

Brazil Cooperatives Sell Less Overseas, But Revenues Grow 28%

Cooperatives in Brazil had revenues of US$ 1.86 billion with exports in the first ...

A Year After Floods Killed over 900 in Rio, Brazil Has Done Nothing to Prevent Future Tragedies

Brazil’s minister of National Integration, Fernando Bezerra Coelho, went before a special commission specially ...

Brazil: Once Expelled Goldminers Come Back to Yanomami Territory

Illegal goldminers have invaded the land of the Yanomami Indians in the Brazilian Amazônia. ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]
SHOW FULL COLUMNS FROM `wp_wfHits`