Communiqués from the collegiate seek to provide more transparency to debates at meetings, says president of the BC
The president of B.C. (Central bank), Roberto Campos Netosaid that the Copom (Monetary Policy Committee) is not divided. He stated that the decision to cut the basic rate, the Selic, by 0.5 percentage points was unanimous.
The head of the monetary authority gave an interview to journalists this Thursday (28 March 2024) to discuss the RTI (Quarterly Inflation Report). In the document, the BC increased the estimate for Brazil's GDP (Gross Domestic Product) growth in 2024 from 1.7% to 1.9%.
The interview was exceptionally carried out in São Paulo, at the Central Bank.
Watch:
The Copom minutes said that “some” members argued that, if prospective uncertainty remains high in the future, “a slower pace of monetary easing may prove appropriate”.
Campos Neto stated that the term “some” refers to 2 or more and that is “hard to say” what each person thought, but the BC's intention is to increase transparency.
The president of the Central Bank declared that Copom members were discussing the relevant horizon of monetary policy and that the type of pace of cuts in the Selic was questioned, but that the Copom is not divided. “The decisions were unanimous”declared Campos Neto.
The head of the municipality stated that the minutes tried to describe all types of analysis carried out during the 2 days of meetings.
MONETARY POLICY
The Copom (Monetary Policy Committee) – formed by Campos Neto and the 8 directors of the Central Bank – reduced the Selic rate to 10.75% per year on March 20. They signaled a reduction of 0.5 percentage points at the next meeting, in May.
The BC's announcement was the 6th consecutive reduction of 0.5 percentage points. The monetary authority indicated that it will slow down the pace of cuts from June onwards.
The RTI (Quarterly Inflation Report) showed that there is a 19% probability of inflation being above the target, which is 3%. The allowable range is 1.5% to 4.5%.
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