North American price index is the highest in 40 years and the effect contaminates the entire globe, evaluates Rogério Boueri
Rogério Boueri, special advisor to the Minister of Economy, believes that the Americans are “fool” to control inflation and “bitter medicine” (interest rate rise) will contaminate everyone.
The Brazilian interest rate is at 12.75% per year and should rise another 0.5 percentage point this Wednesday (June 15th).
On the same date, the Federal Reserve (Fed, US central bank) is expected to raise interest rates by up to 0.75 pp. Currently, the rate varies between 0% and 0.25%.
The Fed’s objective: to try to control the highest inflation in 40 years. The CPII index, which considers consumer prices, reached 8.6% in the 12-month period.
Boueri praises the Brazilian Central Bank. He said he has no reason to criticize the local monetary authority.
The executive made the comments at lunch with the parliamentary front of entrepreneurship, on Tuesday (14.jun).
Boueri took office less than a month ago in place of Adolfo Sachsida.
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