Brasília - The Minister of Planning, Guido Mantega, said, yesterday (20), that the 0.50% hike in the Selic interest rate was necessary, because there was a slight growth in inflation. The Minister explained, however, that this increase was merely nominal and that the real interest rate remains stable. "Nobody likes an increase, but it was a precautionary step," he affirmed.

Mantega pointed out that the cost of credit for some sectors has fallen as a result of government programs. He cited, for example, the credit offered by the National Economic and Social Development Bank (BNDES) to micro, small, and medium-sized entrepreneurs at an average rate of 1.4%.

Agência Brasil
Reporter: Andréia Araújo
Translator: David Silberstein
10/21/2004