MNI BRIEF: All Options Open Next Meeting - BCB Deputy Galipolo
Brazil's central bank deputy governor for monetary policy, Gabriel Galipolo, spoke at an event.
Brazil's central bank deputy governor for monetary policy, Gabriel Galipolo, said Tuesday the recent unanchoring process of inflation expectations is a point of concern, noting that the board opted for not providing any forward guidance "keeping all alternatives open" for the next meeting, on July 31.
"We had a process where there was already an unanchoring and there was an increase in short and long-term interest rates, and we saw this unanchoring expand, even with the current inflation process showing a more benign behavior," Galipolo said in an event sponsored by the credit union Sicred.
The deputy governor highlighted that the board is now waiting to see how the developments unfold. "We are now keeping all alternatives open precisely because uncertainty has increased, diversity has increased, and this has put us in a situation where we are more data-dependent and not offering any kind of signal about the future", added. (See MNI INTERVIEW: BCB To Keep Rates High For Longer -Le Grazie)