president central bank (BC), Roberto Campos Neto said on Thursday (10/19) that some technical discussions held within the scope of the British Columbia Monetary Policy Committee (Copom), such as factors influencing decisions on the country’s base interest rate, have become “national topics.” It is discussed by the community.
In a relaxed tone, Campos Neto compared the controversy surrounding Colombia’s performance, at times, to what happens during the Brazilian national football team’s participation in the World Cup finals.
These statements came during the participation of the head of the Monetary Authority in an event in Cuiabá, promoted by the National Federation of Motor Vehicle Distribution of Mato Grosso (Fenabrave-MT) and the Federation of Vehicle Dealers and Distributors of the State of Mato Grosso. Mato Grosso (Sincodev-MT).
“Topics that are very specific to BC, very technical, have become national topics. “We live in an environment where everyone was an economic analyst, like during the World Cup,” Campos Neto said.
Since the beginning of the year, the head of the monetary authority has been strongly criticized by members of the government and the Workers’ Party, including President Luiz Inacio Lula da Silva. The truce appears to have been reached after the first meeting between the two, at the end of September, in the Palacio do Planalto, in a meeting specifically mediated by Fernando Haddad.
Regarding the cooling of inflation in Brazil, Campos Neto stated that the indicator “follows the path” that British Columbia considered “most likely” at this moment.
“Core inflation has fallen significantly in emerging countries in general,” he noted. “Brazil is one of the few countries that has already forecast an inflation rate within the target for 2024 and 2025. When inflation exceeds the target, this generates an inflationary process in itself, driven by expectations.”
Campos Neto highlighted the actions of the European Central Bank, which began a cycle of lower interest rates against some of the world’s major economies.
“The countries that raised interest rates earlier and more quickly, and Latin America stands out, are the ones that are betting on a bigger drop in interest rates,” the British Columbia president said.
“When we look at developed countries, we realize that core inflation is still at very high levels. That’s why we see the US talking about the need to raise interest rates further. The UK is also seeing very high core inflation that we haven’t seen for many years.
“One way to get people to consume more, in a more stable way, is to keep the inflation rate low,” Campos Neto concluded.
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