February 20, 2024

Haddad movement expects Cilic cut for August, see Rio Bravo – Money Times

Fernando Haddad announces CMN’s decisions after the meeting (Photo: MF/Diogo Zacarias)

a National Monetary Board (CMN) On Thursday (29), I decided that the Central Bank (BC) should adopt a continuous inflation target from 2025. The Minister of Finance, Information, announced Fernando HaddadAfter the board meeting.

The continuous objective model is adopted by most of the central banks around the world. In addition, the change pleases both market economists and BC members, including the head of the monetary authority, Roberto Campos Neto, and highlights the director Rio Bravo.

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According to the economist Luca Mercadante, from the Director, the outcome of the CMN meeting was positive. For him, maintaining the inflation target “removes the practical implications of the government’s attack on the central bank”.

“Given this scenario, we expect that long-term inflation expectations will decrease in the next Focus issues, and therefore we anticipate our forecast for cuts in Selic from September to August. Thus, at the end of the year, the Brazilian interest rate should be around 12%,” Mercadante estimates. .

Continue after the announcement