Brasília – The Central Bank’s Monetary Policy Committee (Copom) expects a return to investment and continued growth of family consumption. This evaluation is in the report of the Copom meeting, disclosed on Thursday (18). To contain inflation, the Copom increased the benchmark interest rate, the Selic, by 0.25 percentage point in April, and by 0.5 percentage point on the 10th of July. Currently, the Selic is at 8.5% a year.
According to the report, recent figures show a return to investment and continued growth of family consumption, favoured by public transfers and by the vigour of the labour market. According to the report, in the labour market, rates of unemployment are at a historic low and wages are growing.
To the Copom, on the whole, consumption and investment are being benefited by the fiscal policy, by expansion of offer of credit to natural people and companies and by the programme for concession of public services. “However, the committee is identifying that the speed of materialisation of these expected gains may be contained in case there is a strong turn in the declining level of confidence among families and enterprises.”
*Translated by Mark Ament
