The Federation of Industries of the State of Rio de Janeiro (Firjan) considers the increase in the benchmark interest rate from 14.25% to 14.75% per year excessive, pushing rates to levels not seen in over a decade, when the country was dealing with double-digit inflation. The federation highlights that the current high interest rate environment already significantly restricts economic activity, particularly in the industrial sector, which ended the first quarter of the year virtually stagnant. This situation is further compounded by a recent loss of momentum in the labor market, contributing to the necessary slowdown that is expected to bring inflation back to target in the medium term.

Firjan believes that the current global climate of uncertainty—marked by geopolitical conflicts and trade tensions—requires careful analysis, as maintaining high interest rates may further harm Brazil’s already weakened competitiveness. Given this scenario, and the country’s chronic fiscal issues that prevent a consistent reduction of the Selic rate, the federation stresses the urgency of a structural fiscal reform. Public policies focused on innovation, infrastructure, human capital, and the reduction of production costs are essential to ensure sustainable socioeconomic development in Brazil.