Brazil should adopt bolder moves to cut local interest rates and restrict foreign dollar inflows to protect local jobs and industry, said Workers’ Party president Dilma Rousseff, The Wall Street Journal reports. The party believes that free foreign direct investment will continue to seek profits through differences in foreign and local interest rate levels.
The party also said recent economic difficulties resulted because of quantitative easing policies in the U.S. and neo-conservative policies abroad aimed at deregulation, smaller government and increased profit margins. The Brazilian real increased to nearly 15 percent against the dollar over the past 24 months following foreign investment flows seeking robust returns from high interest rates locally.
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