Unions call extortionate interest rates and fear unemployment – 03/22/2023 – Panel SA

The union centrals criticized this Wednesday (22) the decision of the Copom (Monetary Policy Committee) of the Central Bank to maintain the basic interest rate, the Selic, at 13.75% per year.

In a note, the CUT said that the decision is unacceptable and that it reveals a boycott by Roberto Campos Neto, president of the Central Bank, to the resumption of economic growth. “The decision also reveals how bad a Central Bank is for the country, which declares itself autonomous, but is in the hands of rentiers, especially when they have commitments to political forces contrary to the people and the federal government”, said the CUT.

Força Sindical affirms that “interests are still extortionate” and that the mobilization for the drop of the rate will continue.

“This disastrous policy, unfortunately, results in a drop in economic activity, deteriorates the job market and income, increases unemployment, reduces the consumption capacity of families and greatly compromises economic growth”, said in a note Miguel Torres, president of the Force.

For Ricardo Patah, president of UGT and of the Commerce Workers Union of São Paulo, although it was predictable, Copom’s decision is worrying.

“It was expected, but it is a situation that brings us dismay. While interest rates are high, there is a fear of layoffs, especially for us who represent trade and service workers. This is very bad for Brazil. Interest rates are directly linked to to employment,” said Patah.

This Tuesday (21), the centrals occupied the sidewalk in front of the BC building in São Paulo, on Avenida Paulista, with complaints regarding the interest rate policy of the autarchy. Protesters asked for the departure of Roberto Campos Neto, who was identified in the act as a “Trojan horse” of former President Jair Bolsonaro.

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