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MNI BRIEF: BCB Galipolo No Need To Change Policy Communication

Brazil's Central Bank deputy governor Gabriel Galipolo


Recent positive revisions in inflation expectations for 2024 and in the forecast of the terminal official Selic rate reinforce that the communication strategy of Brazil's Central Bank is on the right track and suggests it makes little sense to change forward guidance of 50bp cuts per meeting, Deputy Governor of Monetary Policy Gabriel Galipolo said on Friday.

The BCB official highlighted the benign side of current inflation but mentioned that the board should continue in the "flight plan" with the caution they have signaled, reinforcing that they are always "data-dependent." (See MNI INTERVIEW: No Acceleration Of Brazil Rate Cuts - Le Grazie)

Galipolo emphasized that the concern about potential wage inflationary pressure has yet to materialize and, if it does, the BCB would react. "Still, we have adopted this cautious position also in terms of reaction," he added at an event sponsored by Bradesco Asset.

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