MNI BRIEF: Hiking Cycle Enough To Anchor Expectations - Campos
MNI (BRASILIA) - The governor of Brazil's central bank, Roberto Campos Neto, said Thursday that inflation expectations are currently the board’s main cause of concern, and they aim to conduct a tightening cycle robust enough to anchor them.
"I would say that inflation expectations are currently the main cause of concern. When we look at implied inflation, which are essentially inflation rates derived from market-traded instruments, we also see significant unanchoring, both in the short and long term," Campos Neto said at an event sponsored by Instituto Lideres do Amanha in Sao Paulo.
"There is concern about implementing a cycle that can effectively anchor expectations," he added, noting that even current inflation has worsened. (See MNI INTERVIEW: Brazil Risks Fiscal Dominance-Ex BCB Deputy)