Rio Branco, 6/19/2003 (Agência Brasil - ABr) - The reduction of the country's basic interest rate (Selic) by half a percentage point, from 26.5% to 26%, announced yesterday by the Monetary Policy Committee (Copom) was a technical decision, but it shows that the effort made by the government over the last five months to recover economic stability has been successful, says chief presidential aide, Luiz Dulci. That effort has laid the groundwork for a prudent, but decisive, begining of renewed growth, he added.

Dulci made his remarks at a public hearing (State Forum) on the government's Multi-Year Plan (PPA) 2004-2007. "What we had to do was recuperate stability so the country could grow again without inflation. That is what the Copom decision to reduce the Selic means and it shows that the Central Bank agrees with that technical critieria," said the aide, adding that now everyone has to join the government and cheer for further gradual, sustainable reductions in the months ahead. (AB)