Economists launch manifesto against high interest rates – 02/16/2023 – Panel SA

The manifesto asking for a drop in interest rates reached 3,680 signatures, launched in recent days by names such as Luiz Carlos Bresser-Pereira, Paulo Nogueira Batista Jr., Luiz Gonzaga Belluzzo and Luciano Coutinho.

The document, which echoes Lula’s complaints in the conflict with the Central Bank, states that the interest rate is at unacceptable levels and has been kept exaggeratedly high by the Central Bank.

“Overcoming the Brazilian challenges can only be achieved with a new economic policy, promoting growth and shared prosperity. Reasonable interest rates are an indispensable condition for economic normality. Without this, investments will lose out to financial investments and remuneration of work and production will lose to speculation”, says the text.

Baptist Jr. sees traction in endorsing President Lula’s speeches on the subject.

“The manifesto shows that there is broad support for questioning interest rate policy, inflation targets and the so-called independence of the Central Bank. With his statements on these issues, Lula is heading in the right direction, in my opinion”, says the former -Executive director of the IMF and former vice-president of the Brics Bank.

Former Finance Minister Bresser-Pereira considers the current level of interest rates to be violence against investors, who pay scandalous interest rates to invest, and against consumers, who are already heavily indebted. It is what he calls “an old Brazilian vice” and says that Lula was the only president who decided to fight the issue.

“I defend that the real interest rate in Brazil should be calculated taking into account the international interest rate plus the Brazil risk. The real rate is negative in the US and Europe, while the Brazil risk is currently 2.5%. reasonable rate that Brazil should have is 2.5%, maybe even 2%. We are at 7.87%, according to the latest BC survey. This is a scandal, it is a capture of public assets because it is the State that pays these interest”, says Bresser-Pereira.

Joana Cunha with Paulo Ricardo Martins It is Diego Felix

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