The president of the Central Bank, Roberto Campos Neto, indicated that the basic interest rate, the Selic, should begin to fall in June 2023. In a press conference on the Quarterly Inflation Report, this Thursday (29), the president emphasized that the BC uses the Boletim Focus yield curve.
“In the Focus curve there is a cut in June and using this cut in June we show that we reach the goals, there is no big difference. The market came to have a curve with a cut a little earlier, but we understand that it is a small difference”, said the president.
The director of Economic Policy, Diogo Guillen, also highlighted that “for the achievement, for the strategy of reaching inflation around the target in the relevant horizon, we use the Focus as a hypothesis, which has the first cut in June.” Currently, the Selic is at 13.75% per year. However, for 2023, the Focus bulletin foresees the base rate at 11.75%.
reappointment
Roberto Campos Neto also denied a possible reappointment for a new term in the presidency of the Central Bank.
“I would not accept the reappointment. The reappointment process generates risk, because the president in the reappointment process can be influenced. I wouldn’t accept it, it’s not related to being a president or the other. That’s what I believe is best for the autonomy of the Central Bank,” said Campos Neto.
Roberto Campos Neto was appointed to the presidency of the Central Bank in February 2019 by President Jair Bolsonaro. In February 2021, after the approval of the Central Bank autonomy law that provides for terms of office for presidents, Campos Neto was reappointed. The current term runs until December 2024.
The main change established by the law was in relation to the mandates of the president and directors of the Central Bank. The current proposal determines that these authorities remain in their positions for four years not coinciding with the term of office of the President of the Republic. As a rule, terms of office must always start on the 1st working day of the 3rd year of each government. All nominees may have their terms renewed for one time only.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
