Energy and interest rates

Energy and interest rates

In Brazil, yesterday’s decision (central bank) was to increase interest rates. In the United States, to reduce them.

We have one of the highest rates in the WORLD!

The energy sector is capital intensive. This means that investments in the production chain will become even more expensive and, of course, the result will be higher prices and tariffs.

In this Brazilian model, although the country potentially has access to the most competitive energy sources on the planet, when costs are calculated including the new interest rates, we are at the bottom if the BRICS (Brazil, Russia, India, China and South Africa) in terms of $/MWh is the reference.

So, we are in fact losers. It is a shame because we could be super competitive and thus attract companies, reversing the sad scenario of systemic reduction of the Brazilian industrial GDP in recent decades.