The president of the Central Bank, Gabriel Galípolo, returned to defend this Thursday (27) that monetary policy should remain restrictive for the “as long as it takes” to control inflation, and classified the country’s interest rates higher than those of its peers as a “structural issue”, while participating in an Itaú Asset Management event.
Regarding the communication after the last Copom (Monetary Policy Committee) meeting, the BC president said that the data so far has produced slow effects, without a major change in the autarchy’s perspectives and stance.
“I don’t see any data that has emerged in this cycle that promotes any change in direction. It’s a process that we will follow dependent on data”, he reported, highlighting that one of the BC’s virtues this year was “being humble”.
Galípolo highlights that it has produced the desired effects in terms of inflation, although it took longer than expected by the municipality.
According to the authority, the risks of rising prices have “lost weight” and the trajectory is close to expectations.
“If there is a structural condition that demands a higher dose of medicine to take effect, the Central Bank will do. It can produce at more or less cost, but it will put the interest rate at the level that is necessary, for as long as necessary to produce convergence,” he said.
Galípolo also cited economic resilience and listed it as one at historically low levels. However, he considers that he has not seen evidence that the growth of the workforce is accompanied by development and productivity gains.
Regarding Brazil’s credit scenario, he points out that the levels are “surprising” for an interest rate of 15%, which demands attention from the municipality as it also contributes to a resilient economy.
