The National Confederation of Industry (CNI) points out that costs for the industry can reach rates of between 25% and 30% annually.
The National Confederation of Industry (CNI), Brazil's main association of industrial companies, has called on those in charge of monetary policy in the country to apply a "more rational" interest rate that encourages productive investments in the sector and results in a reduction of inflationary pressure.
In a written statement, CNI President Ricardo Albán has advocated a less restrictive monetary policy than the current one, with interest rates at 10.75%, to prevent rates from blocking industrial expansion, just when the Brazilian economy is recovering and industry has played an important role in this regard.
"The solution to the equation seems obvious: a more rational interest rate, in line with those practiced in other emerging economies, would encourage productive investments, which would result in a reduction in inflationary pressure, in addition to creating more employment and development. Sometimes it is necessary to state the obvious," says the businessman.
In figures, the industrial organisation points out that costs for the industry can reach rates of between 25% and 30% annually. "The impact along the production chains, and it never hurts to remember that the industrial chain is long, is devastating," it laments.
Moreover, the financial cost incorporated into the final product can represent up to 25% of the consumer price, an "unsustainable" situation for the competitiveness of the Brazilian industrial sector, according to Albán.
In his writing, the official cited countries such as China, which recently adopted measures to stimulate industrial growth, reinforcing his thesis that "a balanced interest rate policy can serve as a powerful lever for development."
While the agricultural sector and the financial system "have strong voices" and are taken into account in the economic debate, Albán has assessed that it is fair that the industry should also make its demands heard and, above all, take into account.
"If Brazil really wants to avoid losing more growth opportunities, it needs to review the role of interest rates in economic policy," concludes the text published in one of the country's largest-circulation newspapers.
