MercoPress. South Atlantic News Agency

Lula da Silva asks Brazilian consumers to go out and spend

Brazilian President Lula da Silva called on consumers to step up spending to help the economy overcome the global credit crisis while assuring them that inflation will remain under control.

"Don't be afraid of consuming with responsibility," Lula said in a nationwide televised address. "If you have debts, try to balance your budget. But if you have money and want to buy a refrigerator, an oven or change your car, don't give up your dream fearing the future." Declining commodity prices and shrinking credit have dampened domestic demand in Brazil and diminished the risk of faster inflation, according to central bank minutes released on December 18, one week after policy makers kept the benchmark interest rate at a two-year high of 13.75%. Growth in Brazil economy may slow to 2.4% next year from 5.2% in 2008, according to a survey among 100 institutions polled by the central bank and released last week. By stepping up purchases, Brazilians will help save jobs, insisted Lula da Silva. "When you and your family buy, you are not only fulfilling a dream,'' Lula said. "You are also helping the economy." Brazilian inflation will end 2008 within targets even with the "explosion of international prices,'' Lula said. The Brazilian central bank cut this week its inflation forecast for 2009 to 4.7%t from an estimated 6.2% this year and said the global financial crisis will curb economic growth.