Dilma Rousseff Says to Tighten Control on Inflation and Cut Expenses

11/07/2014 - 09h34

President Dilma Rousseff said on Thursday (6) the government will "have to do its homework" and tighten control on inflation.

In an interview with eight journalists of the major newspapers in the country, she signalled that the control will be done through cutting expenses and not necessarily by increasing interest rates.

"There is always going to be spending to cut", said the President, for whom "there are limits" by fiscal constraints.

"We must tighten control on inflation", she said. Then, she acknowledged: "We have an internal problem with inflation".

During the interview, Rousseff promised to fight the increase in prices, but she refused to talk about interest.

She only added that not only she "does not intend to touch the tolerance range for inflation target", but she also has no plans to interfere in its centre (4.5%).

The President denied that recognizing the need for an adjustment to resume economic growth means electoral fraud, as the opponent Party affirms, even because, she says, their vision of cutting expenses "is similar to the crazy idea of shock management", another PSDB recourse to reduce government expenditures.

According to Rousseff, there is no "ready recipe" to put the GDP (Gross Domestic Product) back on track.

However, she promised the formula she will adopt to reverse the slowdown "would not lead to unemployment" in Brazil.

"We must adjust a lot of things, not only cut expenses", said Rousseff, who refused to give more details.

Once again, she didn't anticipate her new Finance Minister. She only promised to announce her future economic team after coming back from Australia (November 15 and 16).

"The emerging markets still have potential to re-grow", Rousseff evaluated. She also assesses a permanent drop in international commodities prices will dramatically affect Latin America.

"My hope is Brazil recovers. Meanwhile, I hope the world does, too. "

Translated by JULIANA CALDERARI

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	Pedro Ladeira/Folhapress
	"My hope is Brazil recovers. Meanwhile, I hope the world does, too", said President Dilma Rousseff