MNI BRIEF: BCB Evaluating Real Depreciation Impacts - Galipolo

Brazil's central bank deputy governor for monetary policy, Gabriel Galipolo, said Friday he is assessing how much of the recent depreciation of the real signals underlying issues.

"We are witnessing a scenario of rapid depreciation of the real against the dollar and always trying to compare it with the performance of our peers to determine if this worse performance indicates an additional signal for us to pay attention to," he said at an event sponsored by FGV.

He did not indicate that the central bank would intervene in the exchange rate market, although he expressed increased concern. Galipolo highlighted that the higher exchange rate level suggests the disinflation process will be slower than expected. (See MNI INTERVIEW: Brazil's Copom On Hold Until December - Kfoury)