MNI BRIEF: BCB Worries About Inflation Expectations - Gov Neto
Brazil's Central Bank governor Roberto Campos Neto talks about monetary policy in an event.
Brazil's Central Bank governor, Roberto Campos Neto, said Thursday that inflation expectations have consistently worsened for 2024, 2025, and recently for 2026, adding a point of concern for the board.
"There are several factors contributing to this move. We've tried to list them, including external factors, fiscal policy, monetary policy management, central bank transition, approval capacity for measures in Congress, geopolitical issues, and the recent situation in Rio Grande do Sul (floods)," he said at an event sponsored by B3 in São Paulo.
"For the first time in a long time, current inflation is relatively contained, but expectations are becoming unanchored," Campos Neto stressed, adding that Copom understood there were factors on both sides for inflation, and it was important to keep the forward guidance "more open." (See MNI INTERVIEW: Copom To Hold At 10.50% - Ex-BCB's Kanczuk)