After the head of the Central Bank (BC) speech, Gabriel GalipoloAbout interest rates, this Monday (19), the interrogation is when the end of the SEIC rate will be the rate of SELIC.
“With the expectations that were ignored and the scenario we saw, even with the latest history, it makes sense to remain with these interest rates on a restricted level for a longer period of practices,” Galipo said.
In the analysis of Cnn moneyThais Herédia indicated that Brazil should prepare to live with high interest rates.
Heridia stressed that the moments when interest rates were at a high level included the last period of Alexander Tombini (from 2011 to 2016), and the duration of Ilan Goldfagn (2016 to February 2019).
“The interest increased, for example, by 14.25 % in July 2015 and remained there until October 2016. He spent more than a year stop. Where were inflation expectations during this period? It was high,” noting that we are not at the same time in the same situation, as Gogbo seemed to point to.
“We are not in this case. The expectations have been honored yes, but we have not yet been harsh in this situation. Do we need to look at this period, when expectations are incompatible, if you are practicing a year at the same rate?” He asked Heidia.
This is the highest level of the basic interest rate for the Brazilian economy in nearly 20 years. The last time SELIC was at this level was in July 2006.
