Brazil's Malan calls for U.S. interest rate cut
Reuters, Friday, September 04, 1998 at 18:02
WASHINGTON, Sept 4 (Reuters) - Brazil's Finance Minister
Pedro Malan said on Friday the United States should lower
official short-term interest rates to aid struggling economies
around the globe.
"In my opinion, the one idea that should be seriously
considered at the next meeting of the U.S. Federal Open Market
Committee should be reduction in U.S interest rates. That was
my suggestion and that of other ministers," Malan said at the
conclusion of a two-day meeting of Latin American finance
ministers sponsored by the International Monetary Fund.
Malan added that Brazil has no plans to devalue its
currency, the real, and would not comment on future interest
rate policy in Brazil.
"There will be no change in Brazil's exchange rate policy,"
he said.
Malan stressed that Mexico, Argentina, Chile and Brazil --
Latin America's four strongest economies -- agreed at the
meeting that industrialized nations should assume their
responsibilities in calming world markets.
"We did not come for money. We do not need it. We need
something else. The situation cannot be resolved only by
developing countries. Industrialized nations need to assume
their responsibility in calming this panic," he said.
"We want a more favorable international climate and the
responsibility is not only ours. There must be a greater
coordination with industrialized countries," he added.
Malan repeated his criticism of Moody's Investors Service's
cut of Brazil's credit ratings on Thursday, which he termed
unfounded and said it had added to continued nervousness among
investors as the Brazilian stock markets continued to fall on
Friday.
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Copyright 1998, Reuters News Service |
