Rio - The Federation of Industries of Rio de Janeiro (Firjan) expressed its opinion today that maintaining the annualized benchmark interest rate (Selic) at 16% can have adverse consequences for economic growth.

The organization recognizes that the decision by the Central Bank's Monetary Policy Committee (Copom) reflects a concern over next year's trend in inflation, but it considers that "keeping interest rates at high levels for a long period of time tends to sap the vigor of the country's current resumption of economic growth."

The Firjan once again called for measures to stimulate productive investment as a way to reduce the costs of the Central Bank's current policy.

Agência Brasil
Reporter: Alana Gandra
Translator: David Silberstein
08/19/2004