Trade unions protest against high interest rates

Members of trade unions protest today (Jan. 19) outside the Central Bank headquarters in São Paulo in order to press the Central Bank's Monetary Policy Committee (COPOM) for not raising the key interest rate (SELIC).

COPOM's (Monetary Policy Committee) first meeting of the year began Tuesday (Jan. 18) in Brasília, and will end tomorrow (Jan. 20) evening. After three consecutive meetings without changing the Selic rate (14.25% per year), the market expects the committee's members to repeat the cycle of highs. Financial institutions heard for the Focus bulletin forecast a high of 0.5 percentage points.

João Carlos Gonçalves, labor union's general-secretary, argues that the rise in interest rates may harm workers. "It means more unemployment, less production and less consumption. Workers are concerned about the government's policy of high interest rates. Increase the interest rate means continue recession "

Josimar Andrade, leader of the Workers' General Union (UGT), believes that rising interest rates does not inhibit inflation. "To raise the interest rate is not the only option to hold inflation down. UGT disagrees with this policy of exclusively raising the interest rate."

Translated by Amarílis Anchieta