The process of controlling inflation in Brazil is still very incipient and we have discussions about residual adjustment in the basic interest rate, said this Tuesday the director of Monetary Policy of the Central Bank, Bruno Serra.
In a videoconference promoted by Bradesco Asset Management, Serra said that “we were so surprised” during the current cycle of monetary tightening that it is necessary to be cautious in the decision to end the process of raising interest rates.
According to Serra, the country was still under a monetary policy to stimulate activity until the second quarter of this year. For him, the process will begin to “squeeze fast” from the third quarter.
balanced exchange
The exchange market in Brazil is balanced after normalization of flows to the country, said the BC director, noting that the real is the “best currency” in the year even with the monetary tightening in advanced economies.
In a videoconference, Serra stated that the market now has a greater supply of dollars with the end of the process of reducing debt in American currency in the oil and gas sector, which, for him, has a relevant magnitude. He cited balance in market demand for swaps and the spot dollar.
“Everyone should expect the most fragile to suffer more, the real is the best currency of the year, and much of this is explained by this end of the process of normalization of exchange flows here to Brazil”, he said.
Source: CNN Brasil
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