Central Bank President, Gabriel GalipoloOn Monday (28), it is necessary to consume economic data with Parsimony in the face of the current environment of high fluctuations, especially in American relations with the rest of the world. The statement was made while participating in J. Safra Macro in Sao Paulo.
According to him, the recent price movement in the market is caused by Donald Trump’s tariff Since the beginning of the term this year, it has been distinguished by a strong fluctuation, which “dirty” reads the indicators and requires more caution in data analysis.
“It was a period of fluctuations for market prices. This usually becomes a little dirty in this process, so it is important to always consume (data), always an important exploring,” he said.
“I know that there is always this expectation that he will present itself in one way or another as a previous indicator, but in an environment of this vibration and uncertainty, as we were able to see the differences on the only day that we saw, we must add an additional dose of Parisimonia’s consumption of these data.”
To make the basic interest rate, SELIC – is currently 14.25 % annually – BC mainly analyzes inflation, economic activity, labor market, product gap and inflation expectations, measured by a weekly focus report.
For Galipole, this diagnosis requires patience, especially since rapid changes in the international environment can affect expectations.
British President of Colombia also indicated that the global scenario increases the challenges of emerging countries. He compared China and the United States to “two elephants in the room,” noting that when these great actors, who suffer from smaller economies – “grass”, move, according to Africa.
Despite the difficulties, he pointed out that Brazil has opportunities for the international scene, especially for its diplomatic traditions of supporting pluralism.
According to Galipolo, the country can contribute to the redesign of global economic bases, as it seeks to “the field of playing play” that corrects insufficient stimuli today and prefers more balanced growth.
silver
BC president also stated that even with a real interest near two numbers, the Brazilian economy still holds high levels of dynamism, which indicates, according to him, that the transition of monetary policy in the country is less efficient.
This may require higher doses of cash tightening to produce the required effect on inflation.
Among the long -term solutions, Galipolo cited the need for repairs to normalize credit operation, such as the deportation of high cost lines of cheaper and safety methods, with the use of more guarantees and guarantees.
However, in the short term, he acknowledged that the country would have to live with high interest rates to ensure convergence of inflation.
“This is a very relevant point that we can solve and will not be resolved with silver bullets as I mentioned, we need to start the necessary reforms that must be made so that we can normalize it,” he said.
“But of course, it is difficult for us to escape from what is happening in the international scenario and I think it will cause a lot of movement,” he said.
