2023-06-30 13:45:00
The Ministers of Finance, Fernando Haddad, and of Planning and Budget, Simone Tebet, announced this Thursday the decision to change the inflation targeting system in force for 24 years and establish that the Central Bank must pursue its objective continuously, and no longer annual In addition, it was determined that the price variation target will be 3%.
According to the rule, the Central Bank will have to work based on the established inflation level, which will no longer be linked to the calendar year —as is the case today. The inflation target will be considered met if the indicator remains between 1.5% and 4.5% (taking into account the tolerance margin of 1.5 percentage points for more or less).
The change will take effect from 2025 and, according to Haddad, it is a “government decision”. The minister said that the National Monetary Council was hardly informed about this new directive. The collegiate is made up of Haddad, Tebet and the president of the Central Bank, Roberto Campos Neto, the main target of criticism from the Executive for the current level of interest rates.
Translated by José Alberto Gutiérrez
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