Last friday, Brazil President Dilma Rousseff criticized again the high interest spreads (the difference between the borrowing and lending rates charged to customers) used by Brazil banks. She said Brazil needs “to seek a level of interest similar to that practiced internationally” and to have “interests more consistent with our reality.”
“We are now regarded as a country with a stable economy, international respect, high principles of macroeconomic measures to control inflation, fiscally strong in terms of Debt/GDP ratio. We have a very special position in relation to other emerging economies. We are moving towards higher rates of growth, therefore interest rates should reflect the increasing maturity of our reality,” she said.
The statement came after the graduation ceremony of new diplomats at Itamaraty Palace in Brasilia. Dilma was ironic when asked by a reporter about what would be the ideal level of spread. “If someone gives you this answer, I propose you indicate him to the Nobel prize.”