RIO DE JANEIRO, BRAZIL – In an open letter sent Tuesday, January 11, to the Minister of Economy to justify the failure to meet the inflation target in 2021, Central Bank president Roberto Campos Neto said the institution has been taking the appropriate measures for the IPCA (Extended National Consumer Price Index) to meet the targets set for 2022, 2023 and 2024.
Although market projections for this year point to exceeding the established target ceiling, Campos Neto reinforced that the monetary authority is still focused on meeting the 2022 target.
“The Central Bank has been taking the appropriate measures for inflation to reach the targets set by the CMN (National Monetary Council), of 3.50% for 2022, 3.25% for 2023 and 3.00% for 2024,” he said.
For 2022, the inflation target is 3.50%, with a maximum limit of 5.00%. According to the Focus bulletin released by the Central Bank, the market expects consumer inflation measured by the IPCA to reach 5.03% this year, slightly above the tolerance interval ceiling.
Campos Neto reiterated the Monetary Policy Committee’s (COPOM) assessment that, given the rise in its projections and the risk of de-anchoring expectations for longer terms, it is appropriate for the monetary tightening cycle to advance significantly into contractionist territory.
“The Committee will persevere in its strategy until not only the disinflation process is consolidated but also the anchoring of expectations around its targets,” he said.