Brazil’s New Finance Czar Goes to War Against Inflation and High Interests

Brazil’s new Economy Minister, Guido Mantega, said that Brazil needs "civilized interest rates" signaling the first difference with his predecessor Antônio Palocci who was forced to resign on claims of corruption.

"Brazil needs civilized interest rates with which to stimulate production and consumption. Inflation is under control and there’s nothing impeding lower rates", said Mr. Mantega. (Inflation in Brazil is in the range of 4.5 to 5.5%).

"It’s unanimous in Brazil that the basic interest rate of 16.5% could be lower, although evidently we can’t be soft in the combat of inflation because that is sacred".

"Preserving the fight against inflation is essential, we need much lower rates. The Central Bank is already working on that," added Mr. Mantega.

The resignation of Palocci Monday, March 27, and of his trusted Deputy Murilo Portugal shocked the Brazilian stock exchanges and the US dollar jumped 2,5% and the country risk five points to 245.

Mr. Mantega’s statements were interpreted as an effort to calm markets and his stance as a full collaborator of the economic policies sponsored by Palocci when the now minister was head of the Planning Office and later president of the Social Development Bank.

"These last three years I’ve worked in syntony with Minister Palocci and helped to construct the current policies: fiscal responsibility, fighting inflation and above all development," highlighted Mr. Mantega.

Mercopress – www.mercopress.com

Tags:

Ads

You May Also Like

Elections in Brazil: Time for Wheeling and Dealing

Twenty-one states had completed their vote counts by 1.30 yesterday afternoon, but that didn’t ...

While China Rises the US Falls in Brazil and Latin America

{mosimage}On May 23, 2005 the Al-Hayat newspaper from Beirut, Lebanon had an interesting article ...

Movement of Those Displaced by Dams

Brazil: An Explosive Situation Against Dams

There has been ongoing controversy and violence since the beginning of the construction of ...

Brazil Offers Half a Million Cheap Linux-Powered Computers

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

Brazilian Army Had 138 Weapons Stolen Since 2000

A total of 138 weapons have been robbed or stolen from Army quarters in ...

Rad Carpet

Santana de Parnaíba, in the state of São Paulo, famous for its connection to ...

Market and Government Agree: Brazil’s Inflation Won’t Top 4.5%

All signs point to a fourth straight year of declining inflation in Brazil. At ...

43% of Brazil’s GDP Represented in Business Gathering in Portugal

Telecom, a telecommunication company from Portugal with a big presence in Brazil, is organizing ...

A Brazilian Answer

I have witnessed the good side of globalization. It was hard to hide my ...

Only a Federal Program Can End Brazil’s Big Fraud and Educational Shame

Whenever anyone asks for an explanation of the educational shame in one of the ...