In an interview with the program “Roda Viva”, on TV Cultura, this Monday night (13), the president of the Central Bank, Roberto Campos Neto, said that this is not the time to discuss a possible change in the inflation target.
“It was important for him to say that this is not the time to discuss the target, that changing the target now does not solve the interest rate problem. In our view, this postponed this decision regarding a possible change for the coming months and brought the debate on fiscal responsibility and monetary policy coordination to the present”, said Marcela Rocha, chief economist at Principal Claritas.
The economist highlights the moment when Campos Neto points out that the inflation target is not a monetary policy instrument, that is, it does not have the power to reduce interest rates. “If this was done without these measures, the effect could be counterproductive, a shot in the foot instead of having the desired drop in interest rates”, she says.
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*Posted by Ligia Tuon
Source: CNN Brasil
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