Brazil’s Central Bank optimistic about growth; vigilant about spreading inflation

RIO DE JANEIRO, BRAZIL – The Central Bank is optimistic with the economy’s reaction and vigilant with inflation, said on Monday the institution’s president, Roberto Campos Neto.

In his opening speech at a panel in the Brazil 2021 Investment Forum, organized by the government, Campos Neto pointed out that the latest indicators show that the Brazilian economy improved in the first quarter and that the second quarter is “a little bit better.”

“I think the main doubt is the second half of the year, how much service sector recovery has already occurred, and how much is to follow,” said Campos Neto. “But we think that, looking at the vaccination issue, it will provide us with an opening, a prospect of greater opening in the second half of the year.”

He added that the economy seems to be reacting better to the second wave of the pandemic, despite more severe hospitalizations and death rates than registered in the first wave last year.

“Overall, we are optimistic with the growth of the economy, with how the economy is reacting. We are also optimistic about the possibility of reopening in the second half of the year.”

The president of the Central Bank also said that promoting an interest rate hike above market expectations was aimed at containing the spread of inflation. “The Central Bank is vigilantly monitoring inflation, looking at the spread,” he said.