THE increase of 1 percentage point in the Selic Rate (basic economic interest) received criticism from the National Industrial Development Council (CNDI), which approved a “critical motion” to the decision of the Monetary Policy Committee (Copom) of the Central Bank (BC). Presided over by vice-president and minister Geraldo Alckmin, the CNDI has representatives from 20 ministries, the National Bank for Economic and Social Development (BNDES) and 21 civil society entities.
The department headed by Alckmin, the Ministry of Development, Industry, Commerce and Services (MDIC) did not disclose the full content of the motion. It only reported that the BC’s decision “harms the continuity of economic growth, productive investment and the generation of jobs and income in the country”.
The increase in Selic to 12.25% per year was criticized by the production sector. The National Confederation of Industry (CNI) considered the decision “incomprehensible” and “unjustified”.
The Minister of Finance, Fernando Haddad, classified “surprise” the 1 point increase in basic interest rates. However, he said that the decision was expected by the financial market.
In a statement, the Copom attributed the higher-than-expected increase to external uncertainties and noise caused by the government’s fiscal package. The body informed that it will raise the Selic rate by 1 percentage point in the next two meetings, in January and March, if the scenarios are confirmed. The next meetings will be led by the future president of the BC, Gabriel Galípolo.
This Thursday (12), Alckmin will preside over the meeting of the Council for Sustainable Economic and Social Development, a body composed of representatives of civil society, responsible for advising the President of the Republic in the formulation of public policies and government guidelines. The meeting will focus on sustainable development, industry and energy transition.
