The decision by the Monetary Policy Committee (Copom) to reduce the Selic Rate, the economy’s basic interest rate, by 0.25 percentage points, received criticism from politicians and the productive sector. In their assessment, the reduction in the pace of cuts harms the economic recovery.
In a post on the social network X (formerly Twitter), the president of the PT, federal deputy Gleisi Hoffman (PR), classified the reduction of interest rates by just 0.25 points as a crime. Gleisi Hoffman also criticized the autonomy of the Central Bank (BC) and the maintenance of members of this bank appointed by the previous government.
“The Copom’s decision to cut just 0.25 points from the highest interest rate on the planet is a crime against the country. There is no economic basis for this and four directors disagreed with this decision. Inflation is under control and falling, the investment environment is improving, and so are jobs. This is called sabotage. Against development, against Brazil. This is the consequence of the BC’s ‘autonomy’, which allowed the extension of the mandate of a Bolsonarista leadership, which carries out politics and opposes the government elected by the people”, posted the parliamentarian.
Productive sector
For the National Confederation of Industry (CNI), the Copom’s decision does not reflect the current inflation scenario, which is falling and slowed down in March. This week, the CNI had asked the BC to cut the economy’s basic interest rates by 0.5 percentage points.
“This decision is incompatible with the current controlled inflation scenario and makes it impractical to continue the country’s neo-industrialization project with high interest rate levels. Reducing the pace of cutting the basic rate takes away Brazil’s opportunity to achieve greater economic prosperity, increased employment and income”, said the entity’s president, Ricardo Alban, in a statement.
For the Federation of Industries of the State of Rio de Janeiro (Firjan), the reduced drop is not aligned with Brazil’s current economic scenario. In a note, Firjan pointed out that the disinflation process is ongoing, with consumer inflation within the target tolerance margin, as shown by recent data. The note adds that maintaining interest rates at high levels “has affected business confidence in the Brazilian economy, harming investment, which is essential for sustainable economic growth”.
The entity highlights that in a scenario of external instability, marked by the intensification of geopolitical conflicts and high interest rates, the alignment between fiscal and monetary policies is fundamental. “The recent change in fiscal targets for 2025 and 2026, by postponing the fiscal adjustment necessary to stabilize public debt, influenced investor expectations and increased country risk,” he mentioned. In this context, Firjan considers it crucial to reinforce fiscal credibility, through an effort to contain expenses. “This path will open more space for low interest rates, thus promoting an environment conducive to sustainable growth in economic activity”, concludes the note.
The São Paulo Supermarket Association (Apas) recalls that international factors, such as the delay in reducing interest rates in the United States, led to a reduction in the speed of the cut. The entity assesses that the measure will help to contain inflation, but that it could harm economic activity. “Apas’ expectation is that this Copom decision will have an effect both on inflation control, but, on the other hand, it will have an effect on the pace of domestic activity”, highlighted the entity’s chief economist, Felipe Queiroz.
trade union centers
The decrease in the pace of cuts also received criticism from trade unions. For the Central Única dos Trabalhadores (CUT), the slowdown in the fall of the Selic deepens the heavy interest burden on the government and the population.
“As we have always denounced, the extortionate interest rates charged by the Central Bank have an impact on the country’s development, under the argument that it is necessary to control inflation. But inflation remains under control, and even continues to fall, albeit slowly”, highlighted the president of the National Confederation of Financial Workers (Contraf-CUT) and vice-president of the CUT, Juvandia Moreira.
For Força Sindical, the drop of just 0.25 points is small and insufficient. In a statement, the entity’s president, Miguel Torres, said that the Central Bank frustrates workers and bows to speculators, benefiting rentiers.
“It is worth highlighting that high interest rates bleed the country and make development unfeasible. Payment of interest by the government consumes and considerably restricts the country’s growth possibilities, as well as investments in education, health and infrastructure, among others”, highlighted Torres.
*Alana Gandra collaborated
