Oxford (England), November 14, 2002 (Agência Brasil - ABr) - President Fernando Henrique Cardoso said today that, in spite of the increase registered this week in inflation indices, it is still too soon to cogitate an increase in the prime rate (Selic). In the president's estimate, the inflationary increase was basicially the result of the dollar's rise, and now, as the exchange rate for the American currency becomes stabilized once again, the expectation is for the general situation to return to normal, as well.

"I consider it too soon to discuss interest rates, because, as I said earlier, inflation is basically the result of the dollar's rise, and the dollar fell. So, as there is no indexation - and this was a great accomplishment of ours, there is no carry-over of the inflation, if the government takes the necessary measures," he affirmed. (DAS)