"This intense economic slowdown would already be enough to control inflation," said CNI president Ricardo Alban.

The National Confederation of Industry (CNI) has ruled that the one percentage point increase in interest rates announced by the Monetary Policy Committee (Copom) of the Central Bank of Brazil is unnecessary to control inflation and only harms the pace of economic growth.

In a statement issued after the entity's decision, the current level has already had a strong impact on the economy, which is experiencing a more pronounced slowdown than expected.

"This intense economic slowdown would already be enough to control inflation," said CNI president Ricardo Alban.

Furthermore, the industry has focused on other factors that will contribute to reducing inflation and, therefore, could not have been ruled out by the Central Bank in its decision, such as an appreciation of the exchange rate or the fall in oil prices.

"This decrease in the international price of the commodity helps reduce pressure on gasoline and diesel prices and helps control inflation," he noted, referring to oil.

Along these lines, he lamented that higher interest rates mean more expensive credit for businesses and consumers.

For businesses, they make investments unviable and hinder access to essential working capital resources for daily needs.

As a result, businesses grow less and create fewer jobs, which harms the population.

For consumers, he warned that high interest rates increase the purchase cost of many goods, especially higher-value durable goods such as cars and appliances, which often require financing.