Roberto Campos Neto, the president of the Central Bank, stated that the alternative inflation projection presented by the Monetary Policy Committee (Copom) with interest rates at 10.5% per year shows that the Selic rate is “sufficiently high” to bring inflation to the target in the longer term.
“There have been moments in the past when we outlined alternative scenarios to show that the interest rate is high enough to bring inflation to the target in the longer term,” he said in an interview with the newspaper.
“There was a lot of noise around the short-term numbers. We believe this is valuable additional information for market participants.”
He also explained that the Central Bank used the word “interruption” of the interest rate decline cycle because it best represents the objective of not providing guidance to market participants.
