The increase in the Selic rate (basic interest rates in the economy) by 1 percentage point divided the entities of the productive sector. The National Confederation of Industry (CNI) praised the reduction in the pace of growth. The Federation of Industries of the State of Rio de Janeiro (Firjan) criticized the increase, stating that the increase makes economic recovery more distant.
In a note, the CNI considered the softening of the rate of increase in relation to the recent meetings of the Central Bank’s Monetary Policy Committee (Copom) to be “correct”. In the last three meetings, the Selic had been raised by 1.5 percentage points each time.
“A slower pace of monetary policy tightening less compromises the recovery of the economy. The moment is one of caution. In addition, the defined interest rate is sufficient to continue the expected downward trajectory of inflation until the end of this year”, highlighted the president of the CNI, Robson Andrade, in the statement.
For the CNI, the high uncertainty in the international scenario and the weakening of economic activity call for caution and a reduction in the pace of interest rate hikes, as the Central Bank did. In addition, the fall of the dollar this year and the recent reduction of the Tax on Industrialized Products (IPI), in the assessment of the entity, should help to hold back inflation in the coming months.
According to Firjan, the increase was expected by financial analysts, given the evolution of the current inflationary scenario and the effects resulting from the war in Ukraine. The entity stressed, however, that Brazilian economic activity remains fragile and that the increase in interest rates “compromises the prospects for a consistent recovery in 2022”.
According to the entity, Brazil should avoid compensatory measures that worsen the Brazilian fiscal situation, already shaken.
*Collaborated by Alana Gandra, from Rio de Janeiro