MNI BRIEF: G20 Faces Last Mile of Inflation Fight -Picchetti
BCB deputy governor Paulo Picchetti said the possibility of inflationary pressure stemming from wage adjustments remains a point of attention for the Brazilian central bank.
Paulo Picchetti, Brazil's central bank deputy governor for international affairs, said Thursday there's a feeling among policymakers during the G20 meetings in Sao Paulo that disinflation has taken hold around the world but "the last mile" of the inflation fight has yet to be won.
"There are different degrees in different economies, but it is common among the countries that we are experiencing disinflation. However, there is a perception that the last mile of the race is missing. We have to complete the last part of the journey, and this is crucial," he said in a press briefing. (See MNI POLICY: G20 CenBanks Worried By Optimistic Rates Markets)
Regarding the BCB's concern about the possibility of inflationary pressure coming from wage adjustments, mentioned in the February meeting minutes, he emphasized that the board will continue to monitor the data and it remains a point of attention.