• Categories
  • Archives

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:

  • Show Comments (1)

  • Guest

    Out of this outrageous percentage the boys in Brasilia MUST get their share…let me guess..10%? if they get a huge percent of payback everywhere, why not from here too? We are all fu….!!!!

Your email address will not be published.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

Heating US Economy Gives Brazilian Market the Chills

Latin American stocks retreated, as stronger-than-expected U.S. jobs data stoked concerns about a continued ...

Arabs Love Brazil. They Are 7% of the Country.

They started arriving in Brazil in the nineteenth century. In their luggage was a ...

Brazil’s CVRD Buys Canadian Inco and Becomes World’s Second Largest Mining Co

The Brazilian mining company CVRD (Companhia Vale do Rio Doce) announced today, October 24, ...

A Brazilian Globo TV network soap opera

Through Globo TV Lenses Brazil Is a White Dreamland

For approximately a year now I have been a subscriber to Rede Globo Internacional ...

Pí£o de Açíºcar Is Brazil’s Top-Seller Supermarket

The Pão de Açúcar Group is the leader amongst the Brazilian supermarket chains. It ...

Brazil Adds 4 Million US-made Female Condoms to Its AIDS-fighting Arsenal

The Brazilian Ministry of Health has ordered 4 million FC Female Condom from Chicago-based ...

Brazil Starts Petrobras Biofuel, a US$ 1.5 Billion Venture

Brazil's Petrobras Biofuel, a subsidiary of the state-controlled oil multinational Petrobras, was officially inaugurated ...

True Brazilyankee

Thirty years after the success of the Brit Ritchie in Brazil, American Michael Anthony ...

Amid Corruption Charges, Delays, Cost Overruns, Pelé and Romário Lambast World Cup Preparations

According to Brazilian soccer legend Édson Arantes do Nascimento, better known as Pelé, Brazil ...

Brazil Offers Half a Million Cheap Linux-Powered Computers

Beginning next week, stores all over Brazil will start selling computers on the installment ...