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Indicators show that economic activity is cooling down, says former BC director

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Indicators show that economic activity is cooling down, says former BC director

In an interview with CNN this Tuesday (29), the former director of the Central Bank, Luiz Fernando Figueiredo, assessed that the indicators released this week indicate that economic activity is “cooling down”.

“What we are seeing from the indicators that are more leading is that economic activity is cooling off. It is to be expected that it cools down. There is no way you can reduce inflation if economic activity does not cool down”, said Figueiredo.

The specialist made reference to data such as the Caged (General Register of Employed and Unemployed) of October, which pointed to the net creation of 159.5 thousand new jobs, a slowdown compared to the 277.39 thousand vacancies registered in the previous month.

The IGP-M (General Price Index – Market) registered a deflation of 0.56% in November, after falling 0.97% in the previous month.

Figueiredo also said about the reactions of the financial market to the PEC of the Explosion, which is at the beginning of the procedure and was registered in the Senate system this Tuesday.

“When we look at what is happening with the markets today, they are already reflecting that this PEC will be very dehydrated, it will be more or less at half of what was proposed, which is much more reasonable for you to meet social needs and maintain the level of fiscal stability”, he said.

The text presented to the Senate maintained the original proposal to remove BRL 175 billion from the spending ceiling and leave a space of BRL 23 billion for investments, totaling BRL 198 billion.

Even so, interlocutors of the new government talk about discussing smaller amounts, of R$ 150 billion or less, and also considering the proposal of Senator Tasso Jereissati (PSDB), which does not remove Bolsa Família from the ceiling, but opens up space of R$ 80 billion on the ceiling.

Watch the full interview in the video above.

Source: CNN Brasil

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