With new president, Fiesp criticizes high interest rates and says it is necessary to think beyond Copom

Under the command of businessman Josué Gomes da Silva, son of one of the main critics of the Central Bank’s monetary policy actions during Lula’s governments, Fiesp (Federation of Industries of the State of São Paulo) issued a harsh statement on the rise in interest rates. announced this Wednesday (2).

Josué replaced Paulo Skaf, who ran the organization for 17 years. The new president of Fiesp, ahead of Coteminas, is the son of José Alencar, vice president of the Republic from 2003 to 2010, who died of cancer in 2011. In 2009, Alencar even said that monetary policy was a ” disaster” and that the economy was in relatively good shape despite the BC’s decisions.

This Wednesday, the Copom raised the Selic rate from 9.25% to 10.75%, the highest level in almost five years.

Earlier, the result of industrial production for 2021 was released, which grew, but did not recover the losses of the pandemic and is today at a level similar to that of 2009.

In the note “It is necessary to think beyond the Copom”, Fiesp says that the committee’s meetings should sound like “a warning about everything we fail to do satisfactorily to reap economic growth with the generation of employment and income in a sustainable way”.

“The new level of the Selic is very disturbing, since the inflation it aims to combat does not present a profile suitable for exclusive treatment via interest rate increases. But the reasons that move the Copom to curb the already weakened economic activity should be much more disturbing “, says the entity in the first statement on the subject issued by the new board.

For the federation, the conjunctural issues that define the BC’s actions should not override the structural reasons that influence the national economy.

“Much more than the BC and the Treasury, it is the Powers of the Republic and society that must give guidelines aimed at the common interest of national development”, says the entity, which also defends the sector.

“The expansion of income and the generation of quality jobs are characteristics of the manufacturing industry, with generalized positive impacts, from agribusiness to services. Therefore, Fiesp says: it is necessary to think beyond Copom.”

Also in a note, Firjan (Federation of Industries of Rio de Janeiro) stated that the increase in the Selic rate by 1.5 percentage points was already expected, but that more recent data reveal a still fragile economy and that this increase in interest rates could compromise a consistent recovery of economic activity in 2022.

For the federation, the uncertainties regarding fiscal sustainability continue to contribute to a still very high perception of risk in the country, which reduces the confidence of entrepreneurs and investors.

“It is imperative to rescue fiscal credibility with the approval of the necessary reforms, which are capable of signaling good conduct on the path to sustainability of public accounts. Only in this way will we be able to rescue the already very shaken confidence of businessmen and promote solid growth in economic activity. .”