Finance Minister Fernando Haddad said on Wednesday in an interview with GloboNews that Selic’s impact on inflation will come faster than think.
“The interest shock was very strong, so the answer will come faster. I think we’ll have a faster accommodation as well as that, ”said Haddad.
Selic is currently 13.25% per year after another 1 point increase at the last meeting of the Monetary Policy Committee (Copom) in January this year. The Central Bank policy hardening cycle had returned in September and the municipality already hires another discharge in its next decision in March.
In a statement, the BC indicated the need for a more contractionist monetary policy in the midst of a recent scenario marked by additional discouraging of inflation expectations, raising inflation projections, resilience in economic activity and pressures in the labor market.
In Haddad’s assessment, monetary policy is restrictive in a dose “that does not kill the patient” but aims to converge inflation to the center of the goal.
According to the minister, inflation is expected to arrive in June still above the ceiling of the goal. The Central Bank had already informed on Tuesday (4) in minutes that inflation should close above the goal of 3%, with tolerance interval of up to 4.5%, in the middle of the year.
“If in June [a inflação] is over 4.5%, as it will probably be, it [o BC] will send a letter proposing to the National Monetary Council a convergence trajectory. And then we will evaluate, ”said Haddad.
Even with the letter, Haddad said that by June the relevant horizon of the Central Bank will be different from the current one, with the current one.
