Brazil Urged to Pursue Structural Reforms to Cut High Interest Rates

Rogério Ceron, Executive Secretary of Brazil's Ministry of Finance, emphasized on September 1, 2026, the urgent need for structural solutions to reduce Brazil's persistently high interest rates. Ceron linked the issue closely to Brazil’s long-standing fiscal challenges, describing these problems as historic and complex. He noted that while fiscal policy discussions can be difficult in society, the current debate on this topic, fueled by concerns about high interest rates, is a positive development that raises public awareness.

Ceron highlighted the importance of lowering both short- and long-term interest rates by addressing the high banking spreads that make credit expensive, particularly in sectors like credit card revolving debt. He underlined the necessity of improving both the volume and quality of credit available, acknowledging that although bancarization has progressed, challenges remain.

He also pointed to the success of the second edition of the Desenrola Brasil program, which has helped over 10 million people by tackling delinquency in high-cost credit lines. Additionally, Ceron cited the Worker’s Credit initiative as a structural correction tool for private sector payroll loans, which contributes to reducing credit costs.

This call for comprehensive fiscal reforms and improvements in credit mechanisms follows ongoing efforts to stabilize Brazil's economy and create a healthier financial environment for consumers and businesses alike.