Industry, commerce, and unions are calling for a sharper drop in the Selic rate.

The decision by the Monetary Policy Committee (Copom) to reduce the Selic rate by 0.25 percentage points, to 14.75% per year, was met with criticism from different segments of the economy. Entities in the productive sector consider the move correct, but insufficient to reverse the main obstacles to growth, according to a note from "Agência Brasil". For the National Confederation of Industry (CNI), the cut is not capable of halting the slowdown in activity, unlocking investments, or alleviating household debt. "This caution from the Central Bank is still excessive and will continue to penalize our economy even further," says the president of the entity, Ricardo Alban. According to the confederation, recent data reinforce this diagnosis. Accumulated inflation over 12 months has slowed down and projections remain within the target, while the real interest rate remains high, above the level considered neutral. In the CNI's assessment, this indicates that monetary policy remains excessively restrictive, even in the face of signs of cooling prices. :: Commerce The Fecomércio-SP (São Paulo Federation of Commerce) assesses that the beginning of the rate cut cycle occurred amidst internal and external uncertainties, which limited the intensity of the cuts. "The Selic rate reduction cycle has begun, but the duration and intensity of the cuts are increasingly uncertain," states the entity. According to the federation, service inflation remains under pressure, and the international scenario, with rising oil prices, tends to hinder a more accelerated drop in interest rates. :: External Scenario Global uncertainties also weigh on the decision. The conflict involving Iran, the United States, and Israel has raised oil prices and increased inflationary risks. According to the São Paulo Commercial Association (ACSP), the Central Bank adopted a prudent stance in this environment. "The slowdown in economic activity ended up weighing more heavily, justifying a less contractionary, but cautious, monetary policy," says economist Ulisses Ruiz de Gamboa. :: Union Criticisms On the workers' side, the National Confederation of Workers in the Financial Sector of the Unified Workers' Central (Contraf-CUT) considers the cut insufficient to alleviate the burden of debt. "The announced measure is insufficient to reverse this situation," states economist Gustavo Cavarzan, from the Inter-Union Department of Statistics and Socioeconomic Studies (Dieese), in a note issued by Contraf-CUT. Similarly, the Força Sindical union believes the Central Bank was right to begin the cuts, but erred in its intensity. According to the organization, the interest rate cut is insufficient to inject more energy into the economy and strengthen consumption and the generation of quality jobs. “By maintaining the Selic rate at stratospheric levels, the Central Bank will harm the negotiations of the categories in the wage campaigns in this first semester,” emphasizes the president of Força Sindical, Miguel Torres, in a statement. :: Uncertain pace Despite the beginning of the downward cycle, there is consensus among the entities that the pace of the next decisions will be decisive. For industry, commerce, and workers, a more intense reduction in interest rates is seen as essential to reactivate growth, stimulate investments, and reduce the weight of indebtedness in the Brazilian economy. 

This text was translated by machine from Brazilian Portuguese.