The president of the Central Bank, Roberto Campos Neto, said this Tuesday (15) in New York that “it is too early to celebrate” the “incipient indicators” of falling inflation in Brazil – in fact, the IPCA (Extended Consumer Price Index) ) rose 0.59% in October, interrupting three months of decline.
Campos Neto was speaking at an event held by Lide, a group founded by former São Paulo governor João Doria. “Although a large part of the improvement in recent inflation is due to government measures, there are incipient indicators that show a qualitative improvement. It is too early to celebrate, we need to persist in fighting inflation, we need to persist in achieving our targets because this is the best way to contribute to sustainable growth”, he said.
In the midst of the debate on the priority that president-elect Luiz Inácio Lula da Silva (PT) intends to give to the social area over spending cuts, at least in a speech that impacted the financial market, Campos Neto defended fiscal responsibility for guarantee social investments.
“We have to show fiscal discipline. There is an inflection point where supporting those most in need puts stability at risk,” he said. “We need a set of policies that look at the social, but that attract investment.”
He defended the BC’s action in the context of the Covid-19 pandemic. “I think the Central Bank quickly identified the beginning of the pandemic. It made the largest release of capital and liquidity very quickly. The Central Bank identified the persistent nature of inflation faster, and was the first to raise interest rates”, he said, citing the later scenario, with the Ukrainian War, which fueled energy and food prices worldwide.
In his speech, Campos Neto predicted lower growth next year, given the global slowdown driven by the United States. “But Brazil is a serious candidate to benefit from the new global reality. It has renewable energy in large quantities. We must avoid raising taxes,” he said, applauded by the audience composed mostly of Brazilian businessmen.
Journalist Igor Gielow travels at the invitation of Lide
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