Remembering that Brazil has won three -digit inflation, he said the BC will make the effort ‘that has to be made’ to defend the value of the real, which is a very important asset
The president of the Central Bank (BC), reinforced on Saturday (7) that the monetary authority is “very dissatisfied” with the fact that inflation is out of the goal of 3%. He also reiterated his commitment to stubbornly pursue the purpose of inflation, even though he once again avoided signs both about the next decision of the Monetary Policy Committee (Copom) and in relation to the deadline in which interest rates will follow high.
During participation in the forum of the sphere in Guarujá, coast of São Paulo, Galipolo pondered that there has been an evolution in the last four decades in inflationary control. Inflation, he pointed out, is no longer at 6,700%, as in the past, but at 5%, even though this level also brings discomfort.
The president of the BC stressed that, as he wants to maintain the flexibility of Copom in an environment of uncertainty, the monetary authority is still dependent on data. Remembering that Brazil has won three -digit inflation, he said the BC will make the effort “that has to be made” to defend the value of the real, which is a very important asset. “The will not give up your job,” said the president of the BC.
He noted that the BC has already done the work of leaving the monetary policy restrictive, and, in relation to fiscal policy, pointed out that monetary authority reacts as inflation is affected by uncertainties about public accounts.
Galipolo said to see both the legislature and the executive in the evolution of a fiscal adjustment agenda. “We have to take advantage of this consensus to produce the reforms that are necessary,” said the president of the BC. He commented that, in his interlocutions with the President of the Republic, Luiz Inacio Lula da Silva, the chief executive showed “goodwill” to sit at the table and discuss the issue.
*With information from Estadão Content
Posted by Carolina Ferreira
