The decision to hold Brazil’s benchmark interest rate, the Selic, steady was criticized by industry, trade and labor organizations. The source gives the rate as 13.7% in the headline and 13.75% per year in the text. The decision was made by the Brazilian Central Bank’s Monetary Policy Committee (Copom).
The National Confederation of Industry (CNI) described the measure as misguided and excessively conservative. According to the organization, high interest rates make credit more expensive, hurt businesses and families, and slow the economy. CNI President Ricardo Alban called for rate cuts to resume at the next Copom meeting, scheduled for December.
Felipe Queiroz, chief economist at the São Paulo Supermarket Association, said interest rates constrain consumption and investment. The National Confederation of Financial Sector Workers and the Unified Workers’ Central also criticized the decision, pointing to its effects on debt and public resources.
