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Guillen Says Strategy Includes More Elevated Yield Curve Than Estimated

BRAZIL
  • Following the earlier release of the latest BCB focus survey, Economic Policy Director Guillen has been speaking at a public event organized by Credit Suisse.
  • Guillen stated that Brazil’s strategy to bring inflation estimates down to target includes a yield curve more elevated than that estimated by economists surveyed by the central bank.
    • “The central bank will persevere in its strategy until inflation expectations are anchored,” he stated.
    • Central bank expects monetary policy to have a bigger impact on economy in coming months despite stronger-than-expected jobs, activity numbers seen recently.
    • Central bank’s working hypothesis is that there has been no change to inflation inertia and that the central bank sees bigger uncertainty in CPI projections. (BBG)

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