Authorities and entrepreneurs highlight the role of leaders in a global crisis at an event in Brazil

The economy of UK must still have “tough times” ahead, said the country’s former prime minister, Theresa May at an event in Brazil this Thursday (4).

Remotely attending the Expert XP 2022 event, May spoke about the record level of inflation in the United Kingdom, the highest in 40 years, and the actions of the country’s central bank, the Bank of England, to contain the general rise in prices.

The policy highlighted that the municipality announced this Thursday that it expects inflation in the country to reach 13% by the end of the year. The projection was released together with the 0.5 percentage point hike in interest rates UK, the highest increase since 1995.

At the same event, the Former US Treasury Secretary Lawrence Summers highlighted that the rise in prices in the world could be worse if the economic leaders did not recognize the force of inflation and did not seek to fight it with rigidity.

“I think the biggest mistake would be not recognizing that we created an inflation problem and that we have to fight it”, said the American economist.

Summers also said he was hopeful that the Federal Reserve (Fed, the US central bank) “will do what is necessary” to get the US back on track, alluding to a more persistent monetary tightening.

“I believe in a recession in the next 18 months, but I am confident about the amount the Fed will spend [de aumento dos juros] to control inflation, but not for how long”, he declared.

“They believe they will be able to successfully eliminate inflation and reduce it back to 2% without the unemployment rate reaching 4.1%. I think a view that the Fed will be able to control inflation without raising interest rates so much may even happen, but I’ve never seen that in history based on economic theory,” he added.

The theme of the event was “The future through the eyes of those who transform”. Also on the 4th, businessman Rubens Menin — chairman of the board of MRV Engenharia, controller of Inter, Log Commercial Properties and CNN Brasil — highlighted in a panel the importance of the private sector and the elites in Brazil’s social and financial development.

“It’s our fault, we have a habit of putting it on others, but it’s the elite’s, we’re leaving a legacy that is not what we wanted”, he said.

“The social obligation is ours. A country like the USA, richer, 2.5% of the GDP is destined for philanthropy, in Brazil, only 0.2%. If we don’t make elites aware of the importance of philanthropy, we won’t look forward to it.”

In the midst of a global environment of uncertainty, the standards development manager of the Securities and Exchange Commission (CVM) Claudio Maes, highlighted at the event that Brazil has the conditions to be a leader in terms of green finance. “Everything that is required for an asset market to function efficiently is already present in Brazil,” he said.

“This is also a strategic issue for any regulator, as it concerns the competitiveness of markets, that is, there is a tendency that, in the not too distant future, certain assets with characteristics that generate a negative socio-environmental impact will not be well accepted. in many markets. There is an expectation that many projects that do not have a certain socio-environmental impact footprint will have a difficult collection”, he concludes.

On climate risks, the chief of staff of the Central Bank’s (BC) regulatory director, Ricardo Harris, who also attended the event on Thursday, said how climate change affects the monetary policy of central banks around the world. “Climate risk affects one of the primary discussions of central banks: the management of monetary policy. Just see, last year, for example, we had a longer drought and that had an effect on the price of food and energy”.