Clipping of news on Brazilian Culture, Law and Citizenship
18/3/2010
This article was translated by an automatic translation system, and was therefore not reviewed by people.
17/03/10 - 19:46
InfoMoney
SAO PAULO - The decision of the Monetary Policy Committee (Monetary Policy Committee) to keep the Selic rate at 8.75% per year is beneficial to the consumer. The statement is the vice president of Anefac (National Association of Executives in Finance, Administration and Accounting), Miguel de Oliveira.
"When the base rate increases, the interest to the consumer also grow. It takes a while, but ends up increasing the Selic all loans that the consumer wants to do," said the economist.
Oliveira said, however, that although the Committee has chosen not to tamper with the securities, may be that the consumer interest will be reduced. "What happens is that as the beginning of the year was the market consensus that the Selic rate will go up, many banks have anticipated this trend and increased their rates so much that in February, the second consecutive month, the rates of operations Credit again to be high. But now, with this scenario, some banks are saying that interest rates will rise. This creates competition and thus secure the interest is at the tip and the rates might fall, "he explains.
Maintenance
In the evaluation of Miguel de Oliveira, the Committee decided to keep the Selic rate unchanged at this meeting that the measure adopted by the Central Bank, which raised the reserve requirements in late February.
"There is an inflationary pressure that can be stopped with the high interest rates. However, the increase of reserve requirements has the same effect. Increasing interest rates and reserve requirements would be a bit much for the Brazilian economy. I think just from next month, when we can see the result of this change in reserve requirements is that the Committee will reconsider the issue of the Selic.
With this background of indecision, Oliveira says it is difficult to predict how the base rate will end the year. "It depends on the behavior of inflation and how much will be mandatory effective in order to curb demand. Earlier this year, our expectation was that the Selic end 2010 from 10% to 11% per year. But this is no longer sure, to wait to see how effective this measure will be the government. If she can handle the demand that I do not need an increase in interest, "he concludes.
Source: Portal InfoMoney
This article was translated by an automatic translation system, and was therefore not reviewed by people.