MNI BRIEF: BCB Copom's Galipolo Sees Upside Inflation Risk
MNI (BRASILIA) - Brazil's central bank deputy governor for monetary policy, Gabriel Galipolo, said Thursday the current balance of risks for inflation is tilted to the upside at a time when market participants have been questioning how the monetary policy committee or Copom classifies the inflation outlook.
"In my position, currently, the balance of risks is asymmetrical. This asymmetry arises not only because there are more risk factors pointing to potential inflation increases — three in favor of higher inflation against two suggesting a decrease — but also due to the ongoing communication from the members of Copom," he said at an event sponsored by the Brazilian Confederation of Credit Cooperatives.
The deputy governor emphasized that this asymmetry in the balance of risks does not imply forward guidance for a rate hike at the next meeting, but that "all alternatives are open," including a further increase in borrowing costs. (See MNI INTERVIEW: Copom To Hold Rates Despite Hawkish Tone -Velho)