While the government “plays” at having higher inflation while waiting for more growth, the result is seen last Wednesday night.
The Monetary Policy Committee (Copom) of the Central Bank (BC) decided to maintain the Selic rate at 13.75% pa — and, although the number is the same, the effect is of worsening in the economy.
The economic disarray, caused by the government’s nudges to the BC’s independence and the current level of inflation, can already be seen in the long term.
In the communiqué released yesterday, the Copom practically designed the size of the account, and expectations for the behavior of inflation worsened as far as the Central Bank’s view can reach: the four-year term of President Luiz Inácio Lula da Silva (PT).
As long as there are unreasonable debates and uncertainties about the fiscal rule and fiscal rules, there is no chance of a reduction in interest rates. In order to achieve the inflation target — already defined and reiterated by Copom directors —, the alternative scenario presented for the IPCA requires that the rate not be changed until the middle of next year.
In this Thursday’s episode (2), CNN Money also brings the reflections of the monetary policy decision in the United States, where the Federal Reserve System (Fed, the North American central bank) has already started to loosen the rope, with high interest at 0.25 pp
Presented by Thais Heredia, the CNN Money it presents a balance of the news subjects that influence markets, finances and the direction of society and the dynamics of power in Brazil and in the world.
*Posted by Tamara Nassif
Source: CNN Brasil
I’m James Harper, a highly experienced and accomplished news writer for World Stock Market. I have been writing in the Politics section of the website for over five years, providing readers with up-to-date and insightful information about current events in politics. My work is widely read and respected by many industry professionals as well as laymen.
