The president of the Central Bank, Roberto Campos Neto, said that a meeting with CEOs of banks and financial institutions this Friday (26) will be to get feedback on the high interest rates and the credit scenario. He has a videoconference with directors of financial institutions at 3 pm on his agenda.
“One of the points we have with the bank CEOs meeting periodically to get feedback from them. Today, it’s going to be about the impact of high interest rates and the mortgage loan. This feedback is always very important to us”, he said in participation in a virtual event with companies in the real estate market, promoted by Secovi-SP.
According to Campos Neto, one of the BC’s current concerns is the issue with the outward migration of consumers and investors from savings, caused by the rise in interest rates.
“I think the challenge now is to see how this increase in demand, with more persistence, demand and energy prices, will end up. We see the normalization of interest rates worldwide and I think that attention needs to be directed towards ensuring that this normalization is carried out in a way that does not abruptly disrupt the flow of emerging countries”, he stated.
The BC head said he believed that the inflationary peak is close, with an improvement in 2022. “We expected a peak in inflation for September, but the energy shocks came consecutively, surprising everyone. Then there was the point that gasoline. These elements surprised more and spreading in the chains. We think it is close, looking at 12 months, from the top. We believe that next year we will have an improvement”, he added.
Expensive price for small deviation
In Campos Neto’s assessment, the market pricing in relation to the change in the spending ceiling rule by the PEC of precatório was very expensive due to a small deviation from fiscal consolidation. Despite this, he admitted that the market noticed disorganization in addressing the proposal, as well as in the reform of the Income Tax.
“You get the feeling that a very high price was paid for a relatively small detour, not least because the 2021 fundraiser will surprise much more than any type of detour. We have fat in 2022”, he commented.
He also defended that, once the 2022 budget issue is resolved, the government and the economic team invest in a communication on what Brazil’s fiscal framework will be from now on. “It is also important to talk about structural measures and reforms that we need to continue approving”, he reinforced.
Reference: CNN Brasil