"Central Bank's Interest Rate Cut to Reduce Basic Basket Product Prices: Insights by Pedro Brache"

2023-05-31 23:00:30

The former president of the National Council of Private Enterprise (Conep), Pedro Brache, indicated that the reduction of the monetary policy interest rate (TPM) by 50 basic points by the Central Bank will help reduce the costs of the products of the basic basket reduce their prices once the implementation begins.

“This is highly positive because it means that the monetary authorities consider that they have done the job they have to do with inflation and it is also positive because it will bring with it drops in many products that will have to start falling because things will no longer be as expensive as before,” Brache said.

At its May 2023 monetary policy meeting, the Central Bank decided to reduce its interest rate from 8.50% to 8.00% per year.

This decision was made by the economic authorities considering the progress in reducing domestic inflation as a result of the monetary restriction program started in November 2021 and the implementation of subsidies by the Government.