Industry confidence rises after cut in interest rate in Brazil

BRASILIA. KAZINFORM - The Industrial Entrepreneur Confidence Index has risen by 2.1 points, going from 51.1 to 53.2 points. According to Brazil’s National Industry Confederation (CNI), the growth shows that the indicator is beginning to move away from the 50-point threshold separating confidence from lack of confidence, Agencia Brasil reports.

«For the first time since October 2022, expectations regarding the Brazilian economy have crossed the line that separates pessimism from optimism for the next six months,» the confederation noted in a statement.

The survey interviewed 1,373 investors, including 555 from small companies, 508 from medium-sized enterprises, and 310 from large corporations, from August 1 through 7, 2023. The consultation was conducted after the decision of the Central Bank to lower the country’s benchmark interest rate—the Selic—by 0.5 percent, bringing it to 13.25 percent.

«Entrepreneurs are feeling more confident about the next six months, influenced by the decrease in interest rates,» the statement reads. «While industrialists are still not content with the current economic conditions, an improvement has been observed in their perception,» the text goes on to say.