BC President does not rule out new interest adjustments if tariffs press inflation, either by temporary drop in internal prices, the devaluation of the real or negative effects on GDP
At an event held last Monday (11) in the president of the Central Bank, discussed Brazil’s protection against the tariffs imposed by the United States. During the meeting at the São Paulo Commercial Association, Galipolo reaffirmed the institution’s commitment to inflation target and currency defense. He pointed out that the recent decisions of the Monetary Policy Committee (Copom) aim to keep prices under control in a scenario of uncertainty both in Brazil and abroad. Galipole compared the role of the Central Bank to that of a defender, emphasizing the importance of pushing economic risks, even if this compromises the style to communication.
“From the announcement of a tariff, what was seen as a disadvantage has been seen as a protection. As Brazil is likely to depend less on the United States, or depends less on the United States, in a process of tariff Brazil ‘will be less’ commercial point of view, which was welcomed by the market,” Galipolo said.
The president of He explained that the interruption of the Selic rate increases, which remains at 15% per year, was a strategic decision. According to him, this rate is restrictive enough to contain inflation, but may remain high if expectations do not align with the goal. Galipolo also assessed that Brazil tends to be less impacted by the new 50% tariff imposed by the United States on Brazilian products compared to other countries. He has attributed this resilience to the diversification of the Brazilian commercial agenda in recent years, which should mitigate the negative effects of the measure.
Galipolus did not rule out interest adjustments if the rate pressures inflation, mentioning possible impacts on the temporary supply and fall of internal prices, devaluation of the real and negative effects on GDP and employment. In addition, it defended the maintenance of free Pix and under public management, noting that the system already includes 60 million people in electronic payments. He mentioned innovations such as approximation pix and the installment pix, which will be released soon. The payment system is under investigation in the United States for alleged violation of competition practices.
Finally, the Central Bank president stressed the importance of a solid and adaptable economic policy to face global challenges. He emphasized that, despite the difficulties, Brazil is well positioned to deal with external pressures, thanks to a diverse economic strategy and a robust financial system. Galipolo concluded his speech by highlighting the need to continue innovating and strengthening the country’s financial institutions to ensure long -term economic stability.
*With information from Valéria Luizete
*Report produced with the aid of AI
