Brazilian governments have long tried to lower the banking system’s very high interest rates. But while there has been a broad consensus on the negative impact that high banking costs have had on broader economic and financial growth, the policies used by different governments have been very different.
Dilma Rousseff, for example, pressured the central bank to push the base rate down and got the country’s public banks to lower the spread they charged above that rate in an attempt to get the private-sector banks also to lower their net interest margins.
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