Stiglitz Joins Lula in Slamming Brazil’s Interest Rate Levels
- Economist call the country’s borrowing costs ‘astounding’
- Central bank expected to hold key rate at 13.75% this week
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Economist Joseph Stiglitz called Brazil’s interest rate levels “astounding,” aligning himself with a chorus of critics led by President Luiz Inacio Lula da Silva who believe the country’s borrowing costs are hindering economic growth.
The Nobel Prize winner said on Monday that Brazil’s key rate of 13.75% and real rate of around 8% above inflation are “enough to kill any economy.”