Central Bank President Roberto Campos Neto repeated on Monday that the Central Bank needs time to thoroughly analyze economic activity before a possible change of course in basic interest decisions.
Campos Neto reiterated the importance of maintaining “caution, serenity and perseverance” in the conduct of monetary policy, a message that has been echoed by the Central Bank of Brazil in his last communications.
With the Selic parked at a record low of 6.5 percent for more than a year, it reaffirmed that the balance of risks for inflation is symmetrical, amid a slower pace of economic growth, but repeated that Central Bank needs more time to evaluate the scenario before possible adjustments in basic interest rates.
“It is important to observe the behavior of the Brazilian economy over time, with a lower degree of uncertainty and free from the effects of the various shocks to which it was submitted last year,” said Campos Neto.
On Monday, economists heard by the Central Bank in the Focus survey again lowered their expectations for the Gross Domestic Product (GDP), seeing an expansion of 1.97 percent this year and 2.7 percent in the next.
CENTRAL BANK AGENDA +
According to the Central Bank president, “managerial indices” are being created by the monetary authority to measure and establish clear objectives for market capitalization from private sources and the penetration of microcredit and cooperativism in the target populations of these modalities.
The Central Bank is also doing the same to analyze spending on bureaucracy in market access, the degree of financial intermediation and the inclusion of different demographic groups in the financial markets.
The action follows the reassessment and expansion of the so-called Central Bank + Agenda, which under the management of Campos Neto will focus on the “full development” of the capital market, “based on the free market.”
In his speech, he again mentioned the need for a Central Bank prepared for a technological and inclusive future, citing the domain of tools such as blockchain, cloud computing services, artificial intelligence, and scanning.
On another front, Campos Neto stressed the importance of Congress approving the formal autonomy of the Central Bank in law.