MNI BRIEF: High Bar For Changing 100BP Guidance-BCB's Galipolo
MNI (BRASILIA) - Central Bank of Brazil Deputy Governor for Monetary Policy and future governor Gabriel Galipolo said Thursday that there is a high bar for any changes to its guidance for 100-basis-point hikes for the next two meetings.
“It’s a high bar for us to make any changes to the guidance,” Galipolo said during a press conference about the BCB's fourth-quarter report.
The BCB decided to accelerate the pace of its rate hikes, raising the official Selic rate by 100 basis points to 12.25% last week. The board also signaled additional hikes of the same size at the next two meetings.
"I believe it was already quite bold, considering the materialization of risks, to signal this move for two more meetings ahead. What happens after that, I think we’ll have to wait and see how everything unfolds, it’s very clear in which direction we’ve taken this step," the deputy governor added.
Galipolo has been approved by Congress to replace Roberto Campos Neto as governor early next year. (See MNI BCB WATCH: Rates Headed Above 14%, Destination Unclear)