Brasília, June 18, 2003 (Agência Brasil - ABr) - The leader of the government in the Senate, Aloízio Mercadante (Workers Party - PT), said today he believes that the Copom (Monetary Policy Committee) should decide today to reduce the prime interest rate, which stands at 26.5% per year. According to the senator, all of the country's macroeconomic indicators point to a sustainable drop in interest rates.

We have had a very large improvement in foreign accounts, with a trade surplus of US$ 9 billion and a 30% growth in exports in the last six months. We have also had a large improvement in public accounts, with a reduction equivalent to 10% of the GDP (Gross Domestic Product) in the public debt between October and May, and we have had a drop in all inflation indexes. Inflation at this level permits lowering interest rates. When, and how much, the Central Bank and Copom will decide," Mercadante said. (DAS)