Economy

Selic rate is 2% per year, the lowest in history

T&B Petroleum/Agência Brasil
22/01/2021 13:52
Selic rate is 2% per year, the lowest in history Imagem: Divulgation Visualizações: 1340 (0) (0) (0) (0)

The maintenance of the Selic rate (basic interest of the economy) at 2% per year, at the lowest level in history, represented a wise decision, which helps in the recovery of the economy, evaluate entities of the productive sector.

 

For the entities, low interest rates are important for employment and economic activity to grow at a faster pace.

 

In a note, the National Confederation of Industry (CNI) reported that the recent rise in inflation observed in recent months is temporary.

 

For the entity, price indices should converge to inflation targets without the need for increases in the Selic rate before the right moment.

 

"The year 2021 will be challenging, and keeping the Selic rate at a low level allows for a faster recovery of economic activity and employment, as it encourages demand by maintaining better credit conditions for companies and consumers," he said in the statement. , the president of CNI, Robson Braga de Andrade. He called for the approval of structural reforms to keep interest rates low for a long time.

 

For the São Paulo Commercial Association (ACSP), the maintenance of the Selic can be credited to two factors: the increase in the harvest in January, which increases the supply of food in supermarkets, and the tendency for inflation to fall in the coming months.

 

In the entity's assessment, more factors should help to keep interest rates at the lowest level in history, as the expectation of a return to the economy is gradual with the intensification of vaccination against covid-19.

 

For ACSP, vaccination would make financial analysts more optimistic and bring more stability to the exchange rate, with a slight downward trend.

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