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LatinNews Daily - 24 September 2021

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In brief: Brazilian business criticises interest rate hike

* Business representatives in Brazil have expressed their discontent with the central bank’s (BCB) recent decision to raise the benchmark interest rate, the Selic, by 100 basis points to 6.25%. The Federação das Indústrias do Estado de São Paulo (Fiesp), Confederação Nacional das Indústrias (CNI) and Federação das Indústrias do Estado de Rio de Janeiro (Firjan) business lobbies have criticised the BCB’s decision to pursue aggressive monetary tightening at this point in the country’s recovery from the coronavirus (Covid-19) pandemic. All three organisations have issued statements warning that the rate hike “penalises people and businesses at a moment of fragile recovery from the economic impacts of the pandemic” (Fiesp), “puts the economic recovery at risk and increases the probability of a recession next year” (CNI), and “is excessive at this point” (Firjan).