The president of the Central Bank, Roberto Campos Neto, stated this Friday, the 26th, that the fiscal part in Brazil is the most difficult and recognized that the country has great difficulty in cutting expenses. He also spoke about the review of fiscal targets for the coming years, promoted by the Executive, pointing out that there is a perception that it would be more difficult to stabilize the debt after this movement.
In relation to fiscal matters, he pointed out that there was always a big difference between government and market expectations. “It is important to persevere on the fiscal side, because it gives more power and potency to monetary policy. With the fiscal reviews, the market has not changed its projections much, which is a good sign. The fiscal side does not have a mechanical relationship with the monetary side, but it can contaminate”, he said.
Campos Neto also said that the monetary authority will start looking more at debt and fiscal policy in Brazil, mainly because of the scenario of higher interest rates and debt in the United States.
The assessment was made during a lecture at the Scenario and Perspectives for Brazil event, promoted by the Young Presidents Organization (YPO).
