Brazilian President Luiz Inácio Lula da Silva said today that his Administration wants interest rates to come down in Brazil. Lula said the average real market interest rate was 15.5% in 2003 and 10.2% in 2004.
“We are moving towards guaranteeing the stabilization of the economy, so we can be sure that inflation will not return again, because it can cause enormous harm to Brazilian wage earners.”
Lula went on to say that he will not permit an increase in inflation to weaken the purchasing power of wages.
Among the steps that could be taken to control inflation, Lula mentioned reducing import duties, as occurred with steel to offset the increase in the international market price of the product.
The President stated that, despite the proximity of an election year, he refuses to adopt any inflation control measure that could jeopardize the country’s economic stability.
Lula reaffirmed that the government’s inflation target for this year is 5.1%.
“It is difficult, because the pressure is very strong. To control inflation, Brazil today has to deal with part of its prices pegged to the dollar and contracts signed a while ago.”
The President said that Brazil is on the way to structuring its economic policy and becoming a very strong and competitive economy.
Lula declared once again that he wants the 21st century to belong to Brazil and the poorest countries and that this is the moment for consolidating the country.
Lula added that Brazil is striving for the reform of the United Nations to be concretized and for the country to obtain a permanent seat on the Security Council. He judged that a change in the UN will be good for the world.
“The more democratic the UN is, the more capable it will be to carry out tasks that can ensure greater harmony around the world,” he affirmed.
According to Lula, Brazil should possess greater representative authority in the body.
Agência Brasil