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MNI BRIEF: BCB Shouldn't Overreact To Market Swings - Galipolo

(MNI) BRASILIA

Deputy Governor for Monetary Policy Gabriel Galipolo spoke about monetary policy at an event on Friday.

The Central Bank of Brazil should not overreact to financial market volatility, Deputy Governor for Monetary Policy Gabriel Galipolo said on Friday, adding the reaction function of the monetary authority considers several factors beyond swings in asset prices and exchange rates.

"It is important at times like these that monetary authorities do not enter a hall of mirrors, reacting to market volatility with the same intensity," he said in reference to a concept coined by former Fed Chair Ben Bernanke in a 2004 paper.

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The Central Bank of Brazil should not overreact to financial market volatility, Deputy Governor for Monetary Policy Gabriel Galipolo said on Friday, adding the reaction function of the monetary authority considers several factors beyond swings in asset prices and exchange rates.

"It is important at times like these that monetary authorities do not enter a hall of mirrors, reacting to market volatility with the same intensity," he said in reference to a concept coined by former Fed Chair Ben Bernanke in a 2004 paper.

Keep reading...Show less