09/24/2024 – 9:10
Information that has been repeated by several Central Bank spokespeople recently, the minutes of the Central Bank’s Monetary Policy Committee (Copom) reinforced this Tuesday, the 24th, that the unanchoring of inflation expectations is a common factor of discomfort for all members of the committee. “Re-anchoring expectations is an essential element to ensure the convergence of inflation to the target at the lowest possible cost in terms of activity”, emphasized the document released recently and which details what led to the decision to increase the Selic rate to 10.75% per year.
The Committee also assessed that the conduct of monetary policy is a fundamental factor in re-anchoring expectations. The committee committed to continue making decisions that safeguard credibility and reflect the fundamental role of expectations in inflation dynamics.
Regarding the credit cycle, the Central Bank’s top management believes that it continues to expand in volume and reduce rates in most credit lines, both for families and companies. “There is a greater appetite for risk in the supply of credit, but the slight deterioration in the quality of credit granted to families has not yet resulted in an increase in the materialization of risks,” the members of the board considered, adding that capital market funding remains strong.
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