At a finance event in São Paulo, Roberto Campos Neto, President of Brazil’s Central Bank, discussed the complexities of managing inflation on a global scale.
He spoke at Legend Capital’s Legend Day, highlighting the bank’s efforts to navigate these uncertain economic times with clear monetary policies.
Campos Neto engaged in a conversation with Daniella Marques, a former banking leader and current partner at Legend Invest.
He shared the difficulties in predicting monetary policy outcomes due to the unstable economic environment.
He emphasized that fluctuating markets could lead to significant shifts in monetary policy if forecasts don’t match reality.
Looking forward, Campos Neto did not commit to a specific economic forecast but noted that more insights would be available after the next policy meeting
For now, Brazil’s key interest rate, the Selic, remains at 10.75%, with a critical review scheduled for early May.
The bank has been cautiously adjusting interest rates, reducing them by 0.5% at regular meetings.
Campos Neto mentioned a possible slowdown in these cuts by June, although some market watchers anticipate a reduction as soon as May.
The conversation also covered recent increases in U.S. inflation, which hit 3.5% in March. These figures illustrate the widespread nature of inflation issues.
Campos Neto described various outcomes that could affect future rate decisions, depending on whether economic uncertainties grow or decrease.