Brazil Central Bank Chief Won’t Signal Rates
Gabriel Galípolo says the bank will not preview its next Selic move, yet keeps rates tight as inflation forecasts drift above target. The post Brazil Central Bank Chief Won’t Signal Rates appeared first on The Rio Times .
Brazil’s Central Bank chief, Gabriel Galípolo, avoided giving investors any clues about future interest rate decisions. In an appearance at an investment forum hosted by Bradesco Asset Management, he reiterated that the bank would maintain a tight stance on policy for now. Galípolo explained that while the Selic rate, Brazil’s benchmark interest rate, stands at 13.75%, any signal on its future direction would not be forthcoming.
He argued that providing guidance on rate movements would not outweigh the risks involved in an environment of high uncertainty. The Central Bank’s primary goal remains meeting its inflation target of 3%, with a ceiling of 4.5%. Galípolo cited various factors, including supply shocks such as higher oil prices and the El Niño weather pattern, as contributing to the current economic conditions.
He emphasized that the bank’s decisions on rates are made on a per-meeting basis, and that the global backdrop is now deemed "adverse," a step up from "challenging" and "uncertain." Despite the higher inflation forecasts, Galípolo stated that the bank would not abandon its inflation target.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
