The decision of the Monetary Policy Committee (Copom) to raise the Selic rate (basic economic interest) by 1 percentage point and indicating two more increases of the same magnitude received criticism from the production sector. Entities from commerce, industry and trade unions, as well as politicians, believe that high interest rates will harm employment and the recovery of the economy.
In a statement, the National Confederation of Industry (CNI) classified the Central Bank’s (BC) decision as “incomprehensible” and “unjustified”. For the entity, the increase makes no sense after the fall in inflation in November and the announcement of the package to cut mandatory spending.
“Maintaining the Selic increase cycle that began in September would already constitute a mistake on the part of the Central Bank. Intensifying this pace, as the monetary authority chose, therefore, does not make sense in the current economic context, marked by the slowdown in inflation in November and the effective spending cut package presented by the federal government”, highlighted the entity.
For the Associação Paulista de Supermercados (Apas), the increase in the Selic was expected and will help contain inflation, which exceeded the target ceiling. The measure, however, harms production and consumption, in Apas’ assessment. “In the current scenario, increasing interest rates discourages investment and prevents the expansion of productive capacity, as well as directly affecting consumption and aggregate demand, perpetuating structural obstacles to the country’s development”, highlighted the entity’s chief economist, Felipe Queiroz.
Although the rise in interest rates makes credit more expensive and restricts consumption, the São Paulo Commercial Association (ACSP) did not criticize the decision. For the entity, the measure was in line with what was expected by the financial market and is justified in view of economic uncertainties and the de-anchoring of inflation expectations.
“The acceleration of inflation, which remains above the annual target, in a context of still heated levels of activity and the labor market and completely unanchored inflationary expectations, in addition to increased uncertainty in the fiscal field and in the external sector, are factors that contribute to maintain the exchange rate high and justify a more contractionary monetary policy”, considered the ACSP in a note.
President of PT
The national president of the PT, deputy Gleisi Hoffmann, assesses that the increase in the Selic does not make sense in a country that needs to grow. “The BC’s decision to raise the basic interest rate to 12.25% is irresponsible, insane and disastrous for the country. It does not make sense nor would it be effective to avoid rising inflation, which is not demand-driven. Not even to improve the fiscal situation, quite the opposite. This 1 extra point will cost around R$50 billion in public debt”, wrote the parliamentarian on the social network X (formerly Twitter).
For Gleisi, the BC ignores the government’s effort and sacrifice in cutting spending, after sending fiscal measures to Congress. “But it is the end of the disastrous trajectory of Bolsonarista Campos Neto in the BC, responsible for the criminal sabotage of the country’s economy in the first two years of the Lula government. He suffocated the economy and credit and did not take care of exchange rate speculation, which was his obligation to combat. It’s already late Campos Neto. I hope that your tax terrorism will also be overcome from now on”, added the deputy.
trade union centers
The increase in the Selic rate by 1 percentage point was heavily criticized by trade unions. The Central Única dos Trabalhadores (CUT) considers the decision to be an error. For the entity, the president of the BC, Roberto Campos Neto, ends his term “collecting losses for the country”. According to the trade union, higher interest rates do not solve the rise in food prices, linked to climate factors.
“The financial market is betting against Brazil. It is made up of a bunch of profiteers and saboteurs of the nation. The damage of this monetary policy of economic tightening, practiced at the behest of the market by the Central Bank, under the management of Roberto Campos Neto, and with more intensity under the Lula government, are irreparable to the country’s development”, highlighted in a note the president of the National Confederation of Workers in the Financial Sector (Contraf-CUT) and vice-president of the Central Única dos Trabalhadores (CUT), Juvandia Moreira.
Força Sindical considered the interest increase “a wrong and unnecessary remedy”. The entity demanded more sensitivity from the government in 2025, with social policies that reduce poverty and resume investment.
“Unfortunately, the Central Bank missed a great opportunity to stimulate job creation, production and consumption. The country needs to invest in promoting production, creating jobs and distributing income to get back on track with its economic growth”, highlighted the president of Força Sindical, Miguel Torres, in a statement.
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.
