RIO DE JANEIRO, BRAZIL – Fabio Kanczuk, Brazil’s Central Bank‘s director of economic policy, said on Friday that the second wave of the Covid-19 pandemic is very clear in Europe and should also have an impact in the United States.
“I have no idea what will happen in Brazil, partly because of the summer issue. If the second wave hits Brazil it will have significant impacts on fiscal and monetary policy. There will be a reason for further emergency aid while we still have the fiscal issue,” he warned, attending the Macro Vision 2020 event organized by Itaú bank.
According to the director, the indirect impacts of a second wave in Europe and the U.S. should be minor for Brazil.
He recalled that American and European monetary policies are currently with interest rates at a minimum and with no prospect of rising over the next few years. “More impacts in this direction will involve other monetary instruments – such as quantitative easing – with low impact for Brazil,” he added.
Source: Estadão Conteúdo