MNI BRIEF: BCB Must 'Anticipate' In Inflation Fight - Campos
MNI (BRASILIA) - The governor of Brazil's central bank, Roberto Campos Neto, said Tuesday that despite current inflation looking "slightly better," the monetary authority must get ahead of potential risks, which is why they initiated the hiking cycle last month.
"Inflation in Brazil is slightly better, but there is a concern because if I say that growth is above potential, we have strong growth, strong credit, and tight labor, the central bank's job is always to try to anticipate," Campos Neto said at an event sponsored by Crescera Capital.
"We started a cycle gradually and decided not to give guidance to the market because we understood that there was great uncertainty ahead," he added.
The Monetary Policy Committee (Copom) unanimously decided to raise its official Selic rate by 25 basis points to 10.75% last month after holding borrowing costs steady for two consecutive meetings. This marks the first hike since August 2022, following nearly a year of aggressive easing. (See MNI INTERVIEW: BCB To Step Up Hiking Pace In Nov.-Figueiredo)