Palocci joins chorus in favor of single-digit interest rates

20/06/2003 - 19h34

Washington, June 23, 2003 (Agência Brasil - ABr) - The Minister of Finance, Antônio Palocci, is optimistic about bringing real interest rates in Brazil down to single-digit figures. According to the Minister, the government's aim is to make them fall gradually. "We think it is possible that the country's positive economic evolution will permit the adoption of lower interest rates," he assured.

When asked to comment on declarations made by the Minister of Development, Luiz Fernando Furlan, who said he believes in a drop in the prime rate to single digits, Palocci said that the Minister was referring to the real interest rate.

Responding to criticisms that the government is taking tough economic steps, which don't allow the country to grow and don't reflect the desires of the Brazilian population, the Minister said that the government will use every instrument it can to avert the return of the spectre of high rates of inflation.

"Brazil has already gone through this experience and shouldn't blot it out to see how much it cost to combat high inflation rates. For us to understand why it is necessary to adopt an adjusted monetary policy, as we are doing, a rigorous fiscal policy, as we are doing and shall continue to do, to put the indicators in order and now have an agenda of growth," which is better than an agenda of chaos, he emphasized. (DAS)