The vice-president and Minister of Industry, Geraldo Alckmin (PSB), stated that the reduction in the basic interest rate, the Selic, should come soon, but stressed that the Lula government also needs to make a greater fiscal effort. He gave an interview to journalist Reinaldo Azevedo, on the ReConversa program, broadcast on YouTube.
“I am confident on the interest rate issue, because the industry is the most affected by the very high interest rate. (…) I believe that the interest rate will start to fall, if not now, at the next meeting”, he said, referring to the meeting of the Monetary Policy Committee (Copom) of the Central Bank, which takes place this Wednesday. He justified that the dollar fell and the climate and this year’s “super harvest” favored the decline in food prices. “Interest rates falling, the economy flourishes faster”, he added.
He then highlighted the unemployment and inflation data in the country. “We are at an important moment, because when inflation is low, unemployment is high; when unemployment is low, inflation is high. We currently have 5.4% unemployment, the lowest in the historical series, and with 4.4% inflation, falling, that is rare.”
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He pondered: “Of course we shouldn’t be in a splendid position, no. We have to make a greater fiscal effort, the issue of expenses, but I would say that the scenario is a positive scenario.”
Finally, he stated that “many people” who criticize the fiscal issue of the current government do not see the deficits made by the previous government, of Jair Bolsonaro (PL). “The government of our Paulo Guedes, the ‘Chicago boy’, managed to create a deficit of 9.7% [do PIB]”, he criticized. “We have to start running a surplus now, to stop the growth of debt and then it starts to fall”.
