Retreat in GDP raises questions about whether BC will continue to raise interest rates, says economist

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In an interview with CNN Radio, the economist at GAP Asset, Luana Miranda, assesses that the GDP decline of 0.1% in the last quarter came “below expectations” and will bring consequences for this and next year.

The numbers, released this Thursday (2) by the IBGE, are in line with the estimates of economists, who “have been reviewing [as previsões] down for months.

“This situation happens when there is a retraction for two consecutive quarters. This demonstrates that GDP peaked in the first quarter and has slowed down since then,” explained the economist

“This data will bring down the growth outlook for the fourth quarter and next year,” said Luana.

She also reinforced that the data “raises questions about whether the Central Bank (BC) will continue to raise interest rates in this magnitude, given the risk of overkill in the economy, that is, leading to a very large recession next year, following the weakness in the data in the short term.”

“It is a very complicated situation for the Central Bank, monetary policy operates on the economy with lags, and inflation is very high, it should close above 10%”, he added.

*Produced by Bel Campos

Reference: CNN Brasil

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