BTG Pactual: Selic rate level is the biggest challenge in Brazil today

The executive president of BTG Pactual, Roberto Sallouti, stated this Monday (25) that one of the biggest challenges for Brazil currently is the level of the Selic rate.

"One of the biggest bottlenecks in Brazilian industry is the cost of capital; not spread or credit supply. Our biggest challenge is the Selic rate", said the executive while participating in an event held by the Federation of Industries of the State of Rio de Janeiro (Firjan), in the capital of Rio de Janeiro.

Sallouti highlighted that the next government needs to discuss whether the country wants to continue with such high interest rates and that this involves an analysis of public spending.

The Minister of Development, Industry and Commerce, Márcio Elias Rosa, joined the private sector chorus and also pointed to Selic as the main obstacle to productive investment in the country.

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The minister's criticisms also targeted the model adopted by the Central Bank for setting interest rates, currently at 14.5% per year.

"(The model is pessimistic) because he sees risk where there is none and perhaps looks at the future in the rear view mirror, looking at the past", Rosa told reporters.

The BC's Focus bulletin released this Monday points out that the Selic should close the year at 13.25%.

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Source: CNN