The Monetary Policy Committee (Copom ) of central bank should carry out another interest rate hike this Wednesday (3) and suggest an end to the current cycle of increases, but without ruling out the possibility of a new increase, says José Márcio Camargo, chief economist at Genial Investimentos and professor at PUC- RJ
In an interview with CNN Camargo evaluated that “there are some signs that inflation is starting to stabilize, even fall, in part due to the reduction of ICMS, causing gasoline and energy to fall”.
“In addition, we had a deceleration of inflation for industrial products for two consecutive months, a slight deceleration of services, a reduction for three consecutive months in the diffusion of price increases, that is, there are signs of deceleration of inflation even without taking into account the fall in the ICMS”, he emphasizes.
However, he claims that inflation services remains at a “very high” level and above the target, and the Central Bank may have the projection that it will not decline so easily in the short term, demanding another increase in addition to that of August.
Therefore, the economist says that the Copom should “increase now by 0.5 percentage point and suggest that it can stop, but leaving open the possibility of increasing a little more at the next meeting”.
Source: CNN Brasil
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