President of the entity that represents the banks also asked for a “vote of confidence” for the BC
the president of February (Brazilian Federation of Banks), Isaac Sidney, compared this Thursday (27.Apr.2023) inflation with a “cat of 7 lives”. According to him, it is not possible “fence off” regarding price increases.
“Fortunately, since then [em referência à implantação do regime de metas], Brazil broke the backbone of this greater evil, which is inflation. But inflation, I would say, is like a cat of 7 lives, it goes, but it comes back if we let our guard down”he said.
Sidney made the statement during the debate “Interest rates, Inflation and Growth”, held in the plenary of the Federal Senate. He stated that inflation is a “latent problem”.
“History proves to us, when we look at inflation, that in the 15 years that preceded the Real Plan, we had a very high inflation of 300 something percent. When we look at the last 20 years, this annual inflation hovered around 6%, which is still a high level in a international comparison. It is necessary that we continue to control and manage inflation every day, with zeal and the technical instruments that exist”he added.
Watch the debate:
FEES
Isaac Sidney said that the basic interest rate, Selic, currently at 13.75%, “It is at a very high level”. When talking about the topic, she asked for a “vote of trust” for the BC (Central bank).
“I was director of the Central Bank, attorney general and I can testify that the monetary authority has technical and economic models. It has a highly qualified staff, has transparent and collegiate decisions. I want to believe that President Roberto Campos yearns and is anxious for the moment when the rate will have to fall when he has a horizon of controlling inflation“he declared.
“We all want lower interest rates, but this does not depend on an act of will of the Central Bank or the government itself. The level of interest rates depends on of a series of variables”he added.
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