09/20/2023 – 21:38
Among the various messages that the Copom statement proposed to convey after cutting the Selic rate by another 0.50 percentage point this Wednesday, the 20th, is that the total cycle of the rate cut is still unpredictable. The assessment is by the chief economist of the National Association of Credit, Financing and Investment Institutions (Acrefi), Nicola Tingas. But, according to him, the budget cuts of 0.50 percentage points will be maintained in the next meetings.
According to Tingas, this pace of cuts appears to be more appropriate to the set of indicators and parameters prevailing at the moment.
Another message that, according to the economist, the statement conveys is that the balance of risks appears balanced on both sides, without forgetting to mention the importance of fiscal targets in shaping market inflation expectations. It admits the “partial re-anchoring” of expectations, but reinforces the need for serenity and moderation in the conduct of monetary policy.
“In summary, we can attribute to the Copom decision and statement the objective of persevering in the pursuit of inflation targets, with a gradual reduction in the nominal Selic rate,” said Tingas.
#Tingas #Copom #statement #total #Selic #cut #cycle #unpredictable