For the National Confederation of Industry (CNI), maintaining the cycle of increases does not make sense in the current economic context, marked by the slowdown in inflation in November and the effective package of spending cuts presented by the Government.

The National Confederation of Industry (CNI) has described as "incomprehensible and totally unjustified" the decision of the Monetary Policy Committee of the Central Bank of Brazil to raise the interest rate by one percentage point after its meeting on Wednesday.

For the CNI, maintaining the cycle of increases (with the third consecutive increase, up to 12.25%) is a mistake on the part of the Central Bank, in addition to its decision to intensify this pace, as the monetary authority has opted.

"It makes no sense in the current economic context, marked by the slowdown in inflation in November and the effective package of spending cuts presented by the Government," he said in a statement.

Furthermore, the Central Bank's decision ignores the slowdown in economic activity, already observed in the GDP of the third quarter, and the downward trend in interest rates in the main world economies, such as the United States, which next week will undertake its third consecutive interest rate cut.

According to the CNI, intensifying the rate increase, in this scenario, is costly for the economy and the population, since it means less investment and, consequently, less employment and income.

Finally, the confederation has warned that in order to invest, entrepreneurs need to have confidence, which depends, among other things, on a positive economic environment, to which monetary policy "has not contributed." "As a result, the level of confidence of industrial entrepreneurs has worsened," it lamented.