Rio, September 18, 2003 (Agência Brasil - ABr) - The President of the Commercial Federation of Rio de Janeiro (Fecomércio), Orlando Diniz, was disappointed by the reduction of the prime interest rate (Selic) from its previous level of 22%, set in August, to 20%, decided yesterday (17) by the Monetary Policy Committee (Copom). In a note distributed to the press in this capital, he affirmed that the slow-down in the rhythm of reducing interest rates is considered disappointing by the sector engaged in the commerce of goods, service, and tourism, which represents around 350 thousand firms, employs around 1.7 million workers, and has Fecomércio as its spokesmen.

"Commerce is, without a doubt, the sector that suffers the most from the monetary policy that prevails nowadays. This is borne out by the 4.36% drop in earnings revealed in July's Monthly Commercial Survey. Moreover, prices have been showing clear signs of stability. Therefore, it was to be hoped that we could now have at least the same level of interest rates that we had a year ago, that is, 18%. Fecomércio believes that, at the next meetings of the Copom, the Central Bank can go further than it has up to now, so that we can cancel out this period of crisis that has beset us in recent months and start looking ahead with higher hopes," Diniz declared. (DAS)