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Roberto Campos Neto, President of the Central Bank (Raphael Ribeiro / BCB)
O Central Bank disclosed the manhã desta terça-feira (12) to the last meeting of the Monetary Policy Committee (Copom), since it was decided a cut of 0.75 percentage point in Selic, at 3%, in the pandemic period do coronaviruses.
In addition, he emphasized that the conjuncture required an extraordinarily high stimulus and that BC considered a last adjustment for the next meeting, highlighting that the court was also conditioned to the fiscal. According to the document, the next adjustment will not be higher than the current one.
In the expectation of the Central Bank, there will be no GDP in the first goal of the year due to two effects of the pandemic, with gradual recovery starting in the third quarter.
O Copom acknowledges that, at this time, or disinflationary demand shock, it is also associated with
Fiscal fragility, started a review process for low inflation expectations, for nveis not compatible with goals, in particular for the relevant horizon of monetary policy.
The Committee added “discussed the potential existence of a minimum effective limit for the basic tax of Brazilian juros”, in the meeting that decided the haircut. Second or document, or Brazil would be close to the level in which additional reductions “could be accompanied by the instability of our financial markets and the prices of assets”, second or paragraph 15.
“O Committee as um everything recognizes the importance of gradualism in the conduct of monetary policy for evaluation of two prices of financial assets,” highlights the document.
A majority of two members of Copom ponderou or limit not Brazil “would be significantly greater in emerging economies than in developed countries, due to the presence of a prize of risco”.
I was stressed that this award tends to be higher than Brazil, given its relative fiscal fragility and uncertainty as to its prospective fiscal costume. A member argued that, in principle, there was no reason for
existence of such a minimum operational limit. The traditional Canaanites of monetary policy continue
operants, sem discontinuities, embora, possibly, as an increase in the number of variations of the basic tax rate on the prices of financial assets.
“For or Copom, an interaction with the deterioration of the external center with frustrations in relation to the continuity of reforms and possible alterations of a permanent nature, no process of adjustment of public accounts can be carried out, or a process of remaining two structural jures”, says paragraph no. 16.
(Com Bloomberg)
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