Lourenço Melo
Reporter - Agência Brasil

Brasília - The Monetary Policy Committee (Copom) announced another increase in the government's annualized benchmark interest rate (Selic), the sixth in a row since September, 2004. This time the Selic was raised half a percentage point, from 18.25% to 18.75%. The decision, made on Wednesday (16), was unanimous.

The Federation of Industries of the State of Rio de Janeiro (Firjan) criticized the hike. According to the Federation, the pace of economic growth this year will decline in consequence of the increase.

The President of the Federation of Commerce of the State of Rio de Janeiro (Fecomércio/RJ), Orlando Diniz, also expressed concern over the 0.50% hike. He considers unjustified assertions that there is a threat of demand-driven inflationary pressures

Diniz believes that the process of recovery in some sectors of the economy, especially in the area of non-durable goods, can be greatly damaged by the most recent interest rate hike.

Translation: David Silberstein