BRASILIA (Reuters) – The recent above-expected economic growth in Brazil was largely transitory, the director of Economic Policy at the Central Bank, Diogo Guillen, said on Monday, citing conjunctural components that boosted the results.
At a Credit Suisse event on monetary policy challenges, Guillen said that activity in the first half of the year was the result of transitional fiscal measures, such as anticipation of the 13th for retirees and payment of salary bonuses, normalization of sectors in the post-pandemic period and reduction of savings that had been accumulated by families throughout the health crisis.
“In terms of economic activity, (there was) growth above expectations, largely transitory,” he said.
At the event, Guillen also stated that the strategy presented by the BC to bring inflation to around the target involves a terminal Selic higher than market expectations and a longer period of significantly contractionary monetary policy.
(By Bernardo Caram)
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