Diogo Guillen also points out that there is uncertainty about how US tariffs will affect Brazil’s GDP
Diogo Guillen’s director of economic policy, said on Friday (26) that the institution remains uncomfortable with the discouraging expectations for inflation, while the Monetary Policy Committee (COPOM) continues to evaluate that uncertainties are high. “There are many structural risks related to governance, the inspector, the impact of tariffs – so much so that we, as monetary policy authorities, remain cautious. We have to remain cautious because of this uncertainty that obviously impact on inflation and economic growth,” he said. He even pointed out that there is uncertainty about how the fares will affect the gross () of the.
The BC director also emphasized that recent BC communications have addressed how the job market has been more resilient and dynamic, which he said he wanted to reinforce. In this way, Guillen mentioned that the BC has used the term “quite prolonged” with regard to showing a guidance about monetary policy, with Selic at the current level. The evaluations were made during the virtual seminar “Discussion on Monetary Policy with the Central Bank of Brazil”, organized by CITI.
Congress
The Central Bank’s Director of Economic Policy also stated that guidelines that are still not not noticing discussions in the Central Bank in the qualitative aspect, but are not included in the institution’s reference scenario. “So we don’t take it into account in our projections,” he said. Guillen also said he sees different arguments in the financial market about the behavior of the inspector in the second half.
*With information from Estadão Content
Posted by Nicolas Robert
