Central Bank President Roberto Campos Neto said Thursday that the Monetary Authority’s board of directors is not divided, despite observed differences in positions on specific issues, stressing that monetary policy decisions were taken unanimously.
In an interview on the inflation report, Campos Neto said that the BC chose to indicate the intensity of the base interest rate cut only for the May meeting of the Monetary Policy Committee because the scenario is not clear at long term.
“This is exactly why we removed the ‘forward guidance’, because we don’t have such clear visibility. When we don’t have such clear visibility, it’s clear that it depends a little bit on the scenario from here to there,” he said.
At a meeting last week, the Monetary Policy Committee (Copom) announced a 0.50 percentage point reduction in the Selic rate, to 10.75% per annum, and shortened its guidance on future cuts citing increased uncertainties , stating that its board expects a cut of the same intensity only at the next meeting.
In the minutes of the meeting, the Authority said that some of its directors believe that a reduction in the pace of base interest rate cuts may be necessary if uncertainties remain high in the future.
In the interview, Campos Neto said that there is no debate in which all BC members have the same position on all topics.
Commenting on the communication that “some members” of Copom see a possible slowdown in Selic’s cuts, he said that there is greater uncertainty on some issues under discussion, both on the international and domestic scene.
According to Campos Neto, when talking about “certain members,” the BC is referring to two or more members of its board.
He pointed out that the meeting communication placed a little more emphasis on inflationary risks to show the monetary authority’s vision.
The BC president said he understands that food inflation will tend to decline in the coming months.
Campos Neto also expressed respect for the criticism, after being targeted by the Minister of Labor and Employment, Luiz Marinho, underlining that a possible increase in inflation ends up hitting the most vulnerable segment of the population.
“The Central Bank has promoted a process of inflation convergence at a very low cost,” he said.
Source: Terra
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