Brazil’s Central Bank Chief Promises Lower Interests

    The president of Brazil’s Central Bank, Henrique Meirelles, says that the higher
    primary account surplus and the lower ratio between debt and GDP will mean lower
    interest rates in the medium term for Brazilians.

    Meirelles declared that the adjustments to ensure growth in 2005 were being made in monetary and fiscal policy.


    “The adjustments will ensure sustainable growth. Not just for 2005, but for many years. Growth has been strong this year and will continue in 2005,” he said.


    Meirelles pointed out that fiscal policy cannot substitute monetary policy, although both are essential for stability, reducing the country’s vulnerability and achieving consistent investments.


    It is important to keep the two policies finely tuned so Brazil can have lower interest rates and sustainable growth, he said.


    According to Meirelles, the decision to raise the basic interest rate (Selic) was correct (it went from 16% to 16.25%) because it will support growth.


    He added that the Selic could rise again even with the higher primary account surplus target (which went from 4.25% of GDP to 4.5%).


    “The message we have is clear: Brazil is growing strongly. Businessmen who want to maintain their market shares will have to invest, even with higher interest rates,” said the Central Bank president.


    Agência Brasil
    Translator: Allen Bennett

    Tags:

    • Show Comments (0)

    Your email address will not be published.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

    Brazil Targets Blacks and Women in New AIDS Campaign

    The Brazilian government started yesterday, World AIDS Day, an awareness campaign among Brazilians that ...

    Ties with Venezuela Will Bring More Freedom, Says Brazil’s Lula

    Brazilian President Luiz Inácio Lula da Silva declared, today, in Caracas, Venezuela, that South ...

    Stage Struck II

    By Brazzil Magazine Continued from our last issue MILESTONES OF BRAZILIAN THEATER IN THE ...

    200 Indians Invade Brazilian Multinational CVRD and Demand Better Compensation

    Indians demanding greater compensation from mining operations in the Amazon region have invaded a ...

    Brazil Eliminates Taxes on Books

    Brazil’s goverment decision to  eliminate taxes on the production, sale, and importation of books ...

    Brazilian University Starts Cooperation with African Schools

    The University of Manouba, in Tunisia, is interested in projects for special education developed ...

    Terrorist suspects arrive in Brasília

    Brazil Calls Men Plotting a Terror Attack During the Olympics Complete Amateurs

    Brazil’s Federal Police (PF) have announced that the ten people arrested as part of ...

    Former Brasília governor Roriz

    Inquiry Shows Brasília’s Corruption Saga Might Be Decades Old

    Federal government attorneys in Brazil intend to expand their investigation into a corruption ring ...

    Brazilian singer Maria Rita Mariano

    Brazil’s Singing Diva Maria Rita Opens New York’s Brazilian Film Festival

    One does not need to understand Brazilian culture in order to appreciate this annual ...