São Paulo, 6/19/2003 (Agência Brasil - ABr) - The reduction of half a percentage point in the country's basic interest rate did not satisfy the president of the Força Sindical union, Paulo Pereira da Silva. He said the reduction was not sufficient for renewed economic growth, which required additional measures, such as lowering limits on mandatory bank reserves and increasing government outlays.

In a note to the press, Pereira da Silva said: "The reduction is good for speculators and detrimental to production and employment." The note added that the country's economy would face serious consequences as a result. "It should be pointed out that the basic interest rate continues at an extremely high level. As a consequence there is a lack of credit, reduced consumption and continued unacceptable levels of unemployment," he concluded. (AB)