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Campos Neto Says Long Term Rates Are Super Sensitive To Debt

BRAZIL
  • Campos Neto Says Long Term Rates Are Super Sensitive To Debt
  • Central bank President Roberto Campos Neto has been speaking at a lecture during BlackRock Brasil event in Sao Paulo. The BCB head reiterates that he sees an improvement in the CPI data at the margin and that the central bank board remain committed to bringing inflation to target. Additional headlines of note:
    • Says there's concern w/ global economic growth and Brazil’s economy to slowdown in 2023.
    • Global bottlenecks are improving across sectors.
    • Drop in subsidized credit cuts neutral rate.
    • Says there's uncertainty regarding fiscal scenario which can weigh heavily on CPI. It’s important to work social issues w/ fiscal balance.
    • Says brazil labor market positive surprises to halt.
    • Says debt trajectory must be sustainable and that more govt transparency allows more expenses.
    • Says we must still see how new fiscal framework comes . (BBG)

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