Gabriel Galípolo sees country in “elevated level” from the perspective of monetary tightening
02/12/2025
Central Bank President Gabriel Galípolo said that “we are moving towards a quite elevated level from the perspective of monetary tightening.” Mr. Galípolo participated in an event on Wednesday morning organized by the Brazilian Center for International Relations (Cebri), the Institute of Economic Policy Studies/Casa das Garças, and the Center for Public Policy Debates (CDPP).
The central banker, who took over Brazil’s monetary authority earlier this year, explained that “it’s logical” that Brazil will navigate a short-term “uncomfortable” period for society, businesses, and families, “a time when inflation should remain at an uncomfortable level, outside the target, reflecting all past events, and you expect monetary policy to gradually take effect and present a deceleration process.”
Mr. Galípolo said that within the Central Bank’s baseline scenario, what is set is “an absolutely traditional expectation of what is expected from the transmission mechanisms of monetary policy. In other words, from that point, you begin to witness a deceleration process.”
The COPOM raised the Selic policy rate to 13.25% per annum from 12.25% at the last meeting, in January. The committee also maintained the signal of a 100-basis-point hike for the March meeting.
*By Gabriel Shinohara, Valor — Brasília
Source: Valor International
https://valorinternational.globo.com