08/13/2024 – 12:19
The Central Bank is discussing the possibility of intervening in the exchange rate during times of market stress, but has not acted in the recent period because it understood that there was no dysfunction that would justify this type of action, said the president of the agency, Roberto Campos Neto, on Tuesday, the 13th.
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In a public hearing at the Chamber of Deputies’ Finance and Taxation Committee, Campos Neto stated that the Central Bank has a large volume of foreign exchange reserves and will intervene when it deems it necessary, considering that it would be harmful to take such actions at times when the market is not dysfunctional, but only an increase in the country’s risk premium.
Inflation
Roberto Campos Neto reaffirmed that the unanchoring of market inflation expectations is a concern for the monetary authority, adding that the authority must always be attentive to its mission of meeting the price target. He also noted that the average core inflation in Brazil has started to point slightly upwards.
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