Josué Gomes calls for end to restrictions on Brazil interest rate debate

Businessman and former FIESP president Josué Gomes da Silva has called for an end to what he describes as an interdiction on the debate regarding Brazil's interest rates. In an article published in Folha de S. Paulo, Gomes argues that the country needs a national pact to restore economic growth and address the extraordinarily high cost of money.

Gomes criticized the current economic discourse, stating that proposals to lower rates that go beyond simple public expenditure cuts are often summarily disqualified or met with distrust. He noted that while the Central Bank's autonomy is an important institutional achievement, it should not grant the institution immunity from public criticism or prevent the discussion of monetary policy premises.

The businessman also addressed the market's reaction to recent election results, suggesting that investor frustration led to attempts by the market to dictate Brazil's fiscal adjustment independently. He cited economist André Lara Resende's technical work as an example of the difficulties in discussing alternative economic models, such as reducing the Selic rate and creating a National Fiscal and Monetary Council.