Q3 Earnings Alert! Plan early for this week’s stock reports with all key data in 1 placeSee list

Brazil VP wants to convince central bank high interest rate 'makes no sense'

Published 03/27/2023, 03:52 PM
Updated 03/27/2023, 03:56 PM
© Reuters. FILE PHOTO: Brazil's Vice President Geraldo Alckmin is pictured during a news conference after meeting with John Kerry, U.S. Special Envoy for Climate (not pictured), at the Itamaraty Palace in Brasilia, Brazil, February 27, 2023. REUTERS/Adriano Machad

SAO PAULO (Reuters) - Brazil's Vice President Geraldo Alckmin said on Monday the government needs to convince the country's central bank that its high interest rate "makes no sense at all."

Alckmin's comments came days after the central bank's rate-setting committee, known as Copom, kept interest rates unchanged at 13.75% for the fifth consecutive policy meeting.

The central bank's decision defied intense pressure from the new government of President Luiz Inacio Lula da Silva to reduce borrowing costs, with Lula having renewed criticism of the financial body last week.

© Reuters. FILE PHOTO: Brazil's Vice President Geraldo Alckmin is pictured during a news conference after meeting with John Kerry, U.S. Special Envoy for Climate (not pictured), at the Itamaraty Palace in Brasilia, Brazil, February 27, 2023. REUTERS/Adriano Machado

"We have to convince the central bank that it is not possible to have the highest interest rate in the world... It makes no sense at all," Alckmin said during an event.

Brazil holds the highest interest rate in real terms - which is adjusted for inflation - among the world's major economies, according to Infinity Asset's ranking.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.