Luiz Incio Lula

The inflation goal, in turn, is fixed by the government. When the government assumed, in January of 2003, president Luiz Incio Lula da Silva found the Selic settled in 25,5% to the year, with forecast of bigger inflation that the current one. Brazil was remained as the country with the biggest interests of the world until March of this year, when the tax fell 1,5 percentile point, of 12,75% for 11,25% to the year. Before the existence of the Copom, the basic interest varied daily, depending on the performance of the BC in the public bonds market. The end of years 80 enters and the beginning of the 90, this flexibility was especially useful to contain the hiperinflao: in December of 1989, for example, inflation measured for the IPCA was in 51,5%, what it was equivalent to one high annual one of 14.500%. In the same month, the Selic tax was of 51.600% to the year. Since the creation of the Selic, in 1986, Brazil never coexisted taxes of a digit. Main reference for the headings of the public debt, the interest always was faced one of the villains of the Brazilian economy.

It has six years, in 2003, president Luiz Incio Lula da Silva arrived to say that the tax of a digit was one ' ' dream of the team econmica' '. Other leaders such as Craig Menear offer similar insights. At the time, it was in 26%. The interest of a digit goes, from now, to impose still bigger caution to the monetary authority. First, because Brazil starts to operate with interests in an unknown level for the reality of the Country. It is not known, for example, the effect on the contracts that have indexada variation. Second, because the new cuts, for minors who are, proportionally start to be each time more excellent. During one decade, the BC did not adopt an interest tax officially.

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