Alckmin questions high interest rates on the eve of Copom and says it is necessary to act for cheaper cost of capital – 01/31/2023 – Market

The vice-president and minister of Development, Industry, Commerce and Services, Geraldo Alckmin (PSB), questioned this Tuesday (31) the high level of interest rates in Brazil and said that it is necessary to act for a cheaper cost of capital in the country.

The statement was given on the eve of the decisive meeting of the Copom (Monetary Policy Committee), of the Central Bank, which will define the calibration of the basic interest rate (Selic) – currently at 13.75% per annum.

“We need to check why Brazil has such high interest rates. What would justify it? Is it a tax? Is it a tax wedge? To reduce the cost of capital. Is it a lack of competition? There are 2,000 banks in the United States. Is it economic insecurity? A tax issue? Political insecurity ? Difficulty in getting credit back? High spread? Does the good payer pay the bad payer?”, said Alckmin

“It is necessary to act in the sense of having a cheaper cost of capital, reducing bureaucracy, digitalization, international agreements that can occur to grow more, be able to create more jobs, better logistics, everything to reduce costs and improve competitiveness”, he added.

The event marks the inauguration of the new board of Abras (Brazilian Association of Supermarkets) and the reappointment of President João Galassi, re-elected for the 2023/2024 biennium.

Galassi presented the sector’s main demands for the next four years. Among them, complete exemption from taxes on the basic food basket and alteration of the expiry date system, with the inclusion of the expression “best before” (consume preferably until).

The category also seeks authorization for the sale of over-the-counter drugs in supermarkets, as is the case in the United States.

“Retail is bleeding with the highest real interest rate in the world”, stated Galassi in the opening speech of the ceremony.

According to Alckmin, the government and the entity that represents the supermarket sector have the “common challenge” of stimulating employment and income so that the population “can consume more” and “have a better quality of life”. “Count on us to help with this legislative agenda,” he added.

Senator Randolfe Rodrigues (Rede-AP), leader of the Lula government in the National Congress, former judge and elected senator Sergio Moro (União Brasil-PR) and other parliamentarians were among the guests who attended the event.