In a statement made yesterday (Mar. 7) Michel Temer said that the latest indicators show that the Brazilian economy is recovering. He expects that inflation remains below the center of the target, and that the SELIC—the country’s benchmark interest rate—shows a “piecemeal and responsible decline.”

“Inflation has been on the wane more quickly than many could predict and even more than I imagined, below the ceiling of the target,” he said, adding that he believes the index may stay below the center of the target (4.5%) at the end of the year.

Temer also said he expects the SELIC to drop below the current 12.25% per annum. “We expect a piecemeal and responsible decline. There’s no use lowering interest irresponsibly.”

The president said he hopes the overhaul in the country’s pension system is approved by Congress without major incidents.

“I’m convinced we’ll be able to approve the pension reform. Whoever examines the situation in Rio de Janeiro, Rio Grande do Sul, and Minas Gerais can ascertain that the striking reason among the states is no other than social security. We work to help the states, but we need something in exchange from them. The meeting yesterday [with cabinet members and government allies at the presidential palace] was held with a view to approving that,” Temer said.

In Temer’s opinion, the criticism over the reform stems from a minority with bulkier benefits and concerns about future adjustments. “There’s a group of about 27% who might deserve to see adjustments made. But it’s up for Congress to discuss that. The ones complaining are those who earn a lot more,” he noted.