The president of the MagaLu Council, Luiza Trajano, once again criticized the level of basic interest rate of Brazil — currently at 15% per year — and defended the change in the inflation target. The speech took place this Monday (8) in the capital of São Paulo.
“There is no reason for interest rates to be at this level. Small businesses are the ones that generate jobs and are the ones that suffer the most […] It’s because they put the [meta de] inflation at 3% and they seek this above all else. Then this inflation increases to 4%. I’m saying this everywhere,” he said.
Today the IPCA (Broad Consumer Price Index) target, pursued by the BC (Central Bank) is 3% per year, with a tolerance margin that takes it to 4.5%. Interest is the “medicine” for inflation, and with a less rigid target the monetary authority could make monetary policy more flexible.
Magalu’s CEO, Frederico Trajano, was also at the press conference at the opening of the new Magalu store on Avenida Paulista. The executive stated that, despite high interest rates, he does not see a problem with demand for the unit — which will be the group’s largest physical store.
“Today we have a fiscal policy that encourages consumption. We will have, for example, 11 million families that will stop paying income tax in 2026. This means up to R$30 billion for consumption. I don’t see a problem with demand, with revenue generation”, stated the CEO.
“But it’s past time for this to happen [queda do juro]it should start to fall in January and reach around 11% by the end of the year”, he added.
