Meirelles Tells Lula Brazilian Rates Need a ‘Hit,’ Folha Says

Brazilian central bank President Henrique Meirelles told President Luiz Inacio Lula da Silva that the country’s benchmark interest rate needs a “hit,” Folha de S. Paulo reported, citing a presidential aide it didn’t name.

Meirelles explained to the president that raising the Selic rate at a faster pace would result in lower political stress for the country and have a quicker effect on the economy, the newspaper reported. Lula previously expected a gradual rate increase, Folha said.

The central bank’s press office didn’t immediately return a message left by Bloomberg News.