08/13/2024 – 22:11
The Director of Economic Policy at the Central Bank (BC), Diogo Guillen, reiterated this Tuesday, the 13th, that there is no direct and mechanical relationship between monetary policy and the exchange rate or the interest rate policy carried out by the Federal Reserve (Fed, the Central Bank of the United States). He spoke during a lecture entitled “Economic Perspectives” given during the Broadcast Awards: Analysts, Companies, Projections event, held tonight in São Paulo, by Broadcast(Grupo Estado’s real-time news system).
“One argument that we always bring up and repeat is that there is no mechanical relationship with the exchange rate, nor with the Fed. Although this relationship is often sought, I think it is wrong to seek this mechanical relationship, whether with the exchange rate or with the Fed,” he said.
The director mentioned that the members of the Monetary Policy Committee (Copom) have repeatedly highlighted the less synchronicity of interest rate cut cycles, something that has been seen very clearly in the past. He also emphasized that the recent change in the exchange rate abroad had an impact mainly on emerging economies and that this new level reflected a more challenging scenario for these economies.
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