Economy Minister Paulo Guedes said he sees interest rates falling next year, thus removing an obstacle to the country’s growth. “Even better days ahead,” he told CNN .
The Gross Domestic Product (GDP) result for the second quarter, which was above market expectations, reflects something he had already been warning: the Brazilian economy is even stronger than what the market and even the government projected in its official estimates.
According to Guedes, the Central Bank currently has “the handbrake on” due to the need to fight inflation, a move that the minister characterizes as “correct”, but which slows growth. Without that, as the minister has already pointed out several times, the country’s growth could be even greater this year, around 4%.
With this expected drop in the Selic, the basic interest rate, next year, Guedes sees room for an even greater boost to the pace of the economy.
From early on, the minister has celebrated the good result released by the IBGE on GDP, reminding people close to the relationship with the “path to prosperity”, the motto of Jair Bolsonaro’s (PL) campaign.
To interlocutors, he even recalled that some banks are already reviewing the projection for GDP growth this year above 3%.
Source: CNN Brasil
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