Mello: Interest rate is high and quite restrictive

The executive secretary of the Ministry of Planning and Budget and president of the board of directors of Petrobras, Guilherme Mello, assessed that the basic interest rate in Brazil remains at a high and restrictive level for economic activity.

In an interview with CNN Money, the economist assessed that the next moves in monetary policy will depend on the evolution of the international scenario.

"With economic growth, the end of the war, the reduction in inflation and a possible reduction in interest rates, we do expect the debt trajectory to fall in the future", he added.

Despite the high interest rate scenario, the executive secretary demonstrated optimism with the performance of the Brazilian economy.

According to Mello, GDP (Gross Domestic Product) should surprise positively again this year and could register growth above market expectations.

The president of the Petrobras board also defended the fiscal framework and stated that the rules made it possible to reconstruct the trajectory of public accounts results.

"What we did with the framework was a reconstruction of primary results, so that from now on we will have positive primary surpluses", explains Mello.

*Under the supervision of João Nakamura

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Source: CNN