The challenge is to be fiscally responsible and address a social problem, says Campos Neto

The president of the Central Bank (BC), Roberto Campos Neto, asked several times this Friday (18) that fiscal discipline go hand in hand with social responsibility.

While participating in an event in São Paulo, he said that often countries that try to do more in social programs end up “doing less”, given the impact of fiscal uncertainties on prices.

“You end up having a disorganization in the markets and, in the end, it affects more those you want to help”, declared the BC president.

“It is a challenge, not only in Brazil, but also in other countries, to be fiscally responsible and address the social problem”, he added.

Campos Neto considered it premature to talk about fiscal dominance in Brazil, and assured that the autarchy will do whatever is necessary to fulfill its price stability mandate.

By highlighting the environment of high uncertainties several times, the president of the BC declared that, given the news about the government’s willingness to spend more than expected, it is necessary to wait for what will be approved.

“It will be important not only the fiscal framework, but also the market’s expectations about this new framework. We have to wait”, said Campos Neto.

Source: CNN Brasil

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