Stênio Ribeiro       Reporter Agência Brasil

Brasília – The National Industrial Confederation (“CNI”) released a note saying that the decision by the Central Bank’s Monetary Policy Committee (“Copom”) to reduce the country’s basic interest, the Selic, by 0.75 percentage points, from 9.75% to 9%, was correct.

According to CNI, persistently falling inflation and stagnation in the industrial sector leave room for more active monetary policy [Copom has been almost aggressive, reducing the Selic from 10.50% in the last 90 days; that is, by 0.75 percentage points in its last two consecutive meetings].

The CNI says that, in its opinion, inflation this year should come in near the government’s target [4.5%, plus or minus two percentage points] and that means there is room for an attack on bank spreads. Lower spreads, declared the CNI, will enable “…the cost of capital to be less punishing to the productive chain.”

Allen Bennett – translator/editor The News in English

Link - CNI considera acertada redução da Selic para 9% ao ano