Inflation targets may be the subject of debate at the CMN meeting this week

Brazilians have already learned a lot from inflation and closely follow the decisions of the Monetary Policy Committee of the Central Bank (BC), the Copom.

Now, he will have to turn his attention to the meeting of the National Monetary Council (CMN), a collegiate body that very few people knew about until then.

The CMN meets this week and may discuss changes in the inflation target, the objective that guides the BC’s decisions on the Selic rate. Since adopting the targets system, in 1999, the government has held an annual meeting, every June, to look at the years ahead.

This time, the decision may be brought forward to change the goals already defined by 2025. The anomaly in the national agenda is symptomatic, as it reveals that the country lives with inflation and interest rates above normal, and cannot get rid of the issue.

O CNN Money heard economists with different positions on the possible change, with technical grounds considering the profile of the economy and the cost of fighting the inflationary process with pen strokes and political bravado — and without effective control of public spending.

In a country that is politically and economically stable, deciding on the inflation target depends on common sense, the premise of currency protection and institutional normality. None of these requirements are present in the national debate.

In this Monday’s episode (13), the CNN Money talks about expectations for the inflation target, the factors involved in the possible alteration and the consequences of the government’s choice.

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