The president of the Central Bank (BC), Roberto Campos Neto, said today (28) that the process of inflation convergence to the target is within what was stipulated by the government and that the conduct of Brazil’s monetary policy has been assessed as positive due to the results achieved.
“The objective is to make inflation reach the target, which is determined by the government, by the National Monetary Council (CMN). The objective is to bring this inflation to the target with the minimum cost to society. The minimum cost in terms of growth, unemployment, credit retraction. When we look at what has been done in the last year and a half, Brazil is making inflation converge, even if the last mile is more painful. The BC promoted a convergence process at a very low cost”, he said during the presentation of the Quarterly Inflation Report.
The comment is a response to Minister Luiz Marinho (Labor), who last Wednesday stated that the BC should study the fundamentals of the economy.
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“We respect all criticism. Each person has a way of looking. The mission of the Central Bank is to bring inflation to the target. High inflation is something that creates a huge imbalance and affects the neediest population. It is important that we always have this on display. We have countries, like Argentina, where inflation has generated very high inequality. This is something that we understand needs to be put in place,” she said.
For the BC director, there is an understanding that the work of convergence towards the goal is positive.
“We understand all types of criticism, but I think there is an assessment, locally and internationally, that the BC’s work was well done in promoting the convergence of inflation at a low cost.”
Tags: Campos Neto inflation convergence limits stipulated government
