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Rousseff claims inflation within target
April 4, 2014, 5:27 am

Brazil's President Dilma Rousseff, standing left, speaks during a ceremony held to present six new ministers to her cabinet, at the Planalto Presidential Palace, in Brasilia, Brazil, Monday, March 17, 2014 [AP]

Brazil’s President Dilma Rousseff, standing left, speaks during a ceremony held to present six new ministers to her cabinet, at the Planalto Presidential Palace, in Brasilia, Brazil, Monday, March 17, 2014 [AP]

Brazilian President Dilma Rousseff has hit back at critics blaming her for a slowdown in growth, saying her government has kept inflation within the target range over the past 12 years.

Rousseff identified small and medium industry as the sector to be privileged.

“We must direct our priorities for one of the most inclusive and dynamic sectors of the economy, growing against everything and even everyone, the micro and small business. This sector must be privileged as part of a real strategy for productive development of the country (…) we need a different look for micro and small businesses,” said Rousseff.

She was speaking at the 1st National Forum of the Confederation of Trade and Business Associations in Brazil.

Rousseff on Thursday vowed to boost economic growth further. “We can not be satisfied with, we should look and want more,” she said.

Rousseff, who is seeking re-election in the October polls, said inflation has been kept within the limits set by the National Monetary Council over the past 12 years.

The Central Bank raised the basic annual interest rate for the ninth consecutive time Wednesday, from 10.75 per cent to 11 per cent, in a bid to control the inflationary tendency.

Brazil has set a target annual inflation rate of 4.5 per cent, with a two-point margin, for 2014 and 2015.

The bank predicted an inflation rate of 6.1 percent in 2014, within target limit, said Rousseff.

She also said “Public debt in relation to gross domestic product(GDP), which gauges the country’s capacity to pay its domestic debts, has systematically decreased. In 2002, it stood at 62 per cent of GDP. Today it only stands at 33.7 per cent.”

Brazil has also succeeded in boosting its foreign reserves in recent years, despite a volatile international market.

“Brazil has accumulated reserves that protect us from extreme volatility. It is one of the developing countries with the largest reserves, which reaches $377 billion,” she said.

 

TBP and Agencies