A magic moment for the city of God
11 de junho de 2010UN sanctions could be an opportunity for Brazil
15 de junho de 2010Yesterday Brazil’s basic interest rate rose 0.75 percentage points to 10.25% per year after a unanimous decision by the Monetary Policy Commission at the Central Bank (the country’s Fed).
During a radio program, EBC reporters asked minister Miguel Jorge of Development, Industry and Foreign Trade if the higher interest rates would have a negative effect on Brazil’s international commerce, that is, specifically, the country’s trade balance.
“On the contrary, the reason interest rates were raised was to dampen strong domestic demand. Theoretically, we should be able to export more than ever,” declared the minister.
Miguel Jorge went on to explain that good, effective, balanced export policy was something you built up over a long period of time, with a lot of careful planning.
“Brazil is not a country that has to reduce exports when domestic consumption rises or reduce domestic consumption when exports rise,” said the minister, adding that he saw no problem with market forecasts of interest rates reaching 11.75% by the end of the year in order to control inflation pressures.
