Dilma: Interest rates may go up and down, but at much lower levels.

Reuters President Dilma Rousseff said on Tuesday that the country has managed to reduce interest rates to "acceptable" levels, but that this does not mean the Selic basic rate will not rise further.

According to the president, this fluctuation will continue to occur, but now at more appropriate levels and closer to international standards.

"We have reduced Brazilian interest rates to acceptable levels. Reducing interest rates to lower levels does not mean that they will not rise or fall," said the president during the opening of the 2nd Meeting of Municipalities for Sustainable Development, in Brasília.

"Interest rates will continue to rise and fall. But they will do so at a level more in line with international standards and, therefore, at a more competitive level," Dilma stated.

Last week, the Monetary Policy Committee (Copom) raised the Selic rate by 0,25 percentage points to 7,50 percent per year, a decision that took the rate off the historic low of 7,25 percent per year. The Central Bank had not raised interest rates for almost two years.

(Reporting by Jeferson Ribeiro; editing by Bruno Marfinati)