The Monetary Policy Committee (Copom) forecasts lower inflation than the financial market’s expectations for 2022 and the next two years. “The Copom inflation projections are situated at 6.8% for 2022, 4.6% for 2023 and 2.7% for 2024.”. The information was disclosed this Tuesday (9) in the minutes of the 248th Copom meeting, when it was decided to raise the basic interest rate to 13.75% per year.
In this week’s Focus Bulletin, which consults financial market projections for economic indicators, institutions expect inflation of 7.11% for 2022, 5.36% for 2023, and 3.3% for 2024.
The Committee also indicated that it will assess the need for a residual adjustment, lower than the most recent one, of 0.5%, at the next meeting, which will take place in September. According to the Committee, “the objective is to bring inflation around the target in the relevant horizon.”.
Aid pushes inflation
In the Copom’s assessment, the recently approved income supplementation policies “may raise the country’s risk premiums and inflation expectations as they put pressure on aggregate demand and worsen the fiscal trajectory.”
The document also highlights that the reduction of taxes on energy prices is already beginning to be observed in the indicators, “but the components that are more sensitive to the economic cycle and monetary policy, which present greater inflationary inertia, remain above the range compatible with meeting the inflation target.”
Source: CNN Brasil
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