Minister of Labor and Employment states that it is “imbecility” to inhibit economic growth to control inflation
The Minister of Labor and Employment, said on Wednesday (26.FEV.2025) that the president of (Central Bank), Gabriel Galipolo, will rise the basic rate, Selic, by pressure from the financial market. The speech was during the presentation of the data of CAGED (General Registration of Employees and Unemployed). Brazil, above expected.
Questioned about the base interest, since the Central Bank “hired”A rise on March 19, the minister said he had not participated in this “contract”.
Gabriel Galipolo reinforced the last week that the Copom (Monetary Policy Committee) The Basic Rate, Selic, at the next meeting. It signaled that economic activity data will be fundamental for the Central Bank to decide the future levels.
Therefore, stronger employment creation data can have an effect on service inflation and press the IPCA (National Consumer Price Index) out of the goal. The scenario could require a higher Selic in the coming months.
Marinho said that the galipole signaled “by market pressure”. And said I hope “Do not comply with this contract”. He argued that interest rates inhibit investment and impact job creation.
The minister said that inhibit economic growth to control inflation a “imbecility”. According to Marinho, it is necessary to stimulate the economy to attract investment.
“There is not just a mechanism of controlling inflation, only by the restriction. At least this is my vision. No one said I’m wrong so far ”he declared. He asked for “judgment” for the Central Bank.
Selic rate
The Central Bank the basic rate to 13.25% per year in January. which will raise to 14.25% per year in March. The base interest is there and, according to the projections of the financial agents, will reach the level of 15% this year, the.
The high Selic serves to control inflation, which is in. It is above the goal of 3% and beyond the ceiling (4.5%) permitted. The Central Bank said it is due to the inflation target in June.
