MNI BRIEF: Brazil Outlook Demands 'Higher Doses Of Medicine'
MNI (BRASILIA) - The Central Bank of Brazil's governor, Gabriel Galípolo, said Friday that the monetary authority has the means to pursue the 3% inflation target, adding that the outlook demands "higher doses of the medicine" for it to take effect, in reference of the hiking cycle.
"Over decades, as we learn to live with higher interest rates, various sectors of society have sometimes developed mechanisms, vaccines, that reduce, at times, this transmission channel, demanding that we live with higher doses of the medicine for it to take effect," Galipolo said at an event sponsored by Fiesp and IEDI in São Paulo.
"I think this is a debate that doesn't have a silver bullet, it requires a series of measures. But I believe it is an important debate, a challenge for a generation from the perspective of normalizing the sensitivity of monetary policy to these economic policy cycles," he added. (See MNI INTERVIEW: BCB Close To Ending Its Hiking Cycle - Volpon)