• 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Your email address will not be published.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

Brazilian Airline Gol Gets Prize and US$ 50 Million Loan

Brazilian leading business magazine Exame has awarded Gol Airlines with its Melhores e Maiores ...

Revisiting Two Minstrels

Antônio Carlos Jobim and Vinicius de Moraes: for two generations, their songs have been ...

Brazilian President Lula with Bush in Camp David

Brazil’s Lula Doesn’t Get What He Wanted from Bush: End to Subsidies and Tariffs

The  Camp David meeting, this Saturday, March 31, between American President George W. Bush ...

Brazilian Prison Gang Frees Reporter 24 Hours After Their Video is Shown on TV

A Brazilian reporter working for Globo, Brazil’s leading television network, has been freed nearly ...

Brazil’s Lula and UK’s Blair See Eye to Eye on Farm Subsidies

Brazilian President Luiz Inácio Lula da Silva is scheduled to have a working meeting ...

Brazilian Indian mother and child

Pope Called Insensitive and Arrogant for Remarks on Brazilian Indians

Brazil's National Indian Foundation (Funai),Brazilian historians and the Indians themselves challenged pope Benedict XVI's ...

Two Brazils

Infant mortality is down, but social inequality is up. The Catholic Church lost more ...

Brazil’s Embraer Files Suit Charging Gulfstream with Stealing Its Employees

Brazil’s aircraft maker Embraer has filed a lawsuit against American-based Gulfstream, a manufacturer of ...

Brazil’s Paper and Pulp Exports Triple in 15 Years

In the last 10 years, Brazilian industries of paper and pulp invested US$ 12 ...

Brazil Submarino Has 65% Growth

Brazilian Internet company Submarino S.A. announced that gross sales for the first quarter totaled ...