MNI BRIEF: Copom Considering All Variables - Campos Neto
MNI (WASHINGTON) - The governor of Brazil's central bank, Roberto Campos Neto, said Wednesday the board is considering "all variables" in its monetary policy decisions and the BCB refrained from providing guidance because it would have done "more harm than good."
"On our side, it is important to communicate that we are looking at all the variables. We want to be as transparent as possible about how we do it, what instruments we have, and the motives behind the decisions," Campos Neto said at an event sponsored by UBS during the IMF meetings in Washington DC.
"We have decided not to give guidance because we believe that, at this time, it would not have a positive expected value for us. We might actually have to change the guidance, and that would create more harm than good. But obviously, the message is that we will work to achieve the target," 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 marked the first hike since August 2022, following nearly a year of aggressive easing. (See MNI INTERVIEW: BCB To Up Pace In Short Hiking Cycle-Kanczuk)