The president of the Central Bank, Roberto Campos Neto, said this Tuesday (7) that the independence of the Central Bank is important, because it disconnects the monetary policy cycle from the political cycle. The comment came amid strong criticism from the government of President Luiz Inácio Lula da Silva to the autonomy of the autarchy and the level of interest rates.
Speaking at the 2023 Milken South Florida Dialogues event in Miami, Campos Neto used most of his speech to talk about digital innovation topics, but briefly said in response to a question that BC independence is “very important”, for several different reasons.
“The main reason in the case of Central Bank autonomy is that it disconnects the monetary policy cycle from the political cycle, because they have different durations and different interests. The more independent you are, the more effective you are, the less the country will pay in terms of the cost of monetary policy inefficiency”, said Campos Neto before returning to talk about the autarchy’s innovation agenda.
Source: CNN Brasil
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