BRASILIA (Reuters) – The president of the Central Bank, Roberto Campos Neto, said on Thursday that the autarchy has instruments to inject liquidity or make some adjustment in the credit market, if necessary, but added that it is not possible to say whether there will be a reduction compulsory.
“There is no way to speculate about what will be done, it depends on how this international crisis will develop in Brazil,” said Campos Neto when asked if the BC is considering reducing reserve requirements amid the cooling of the credit market.
“Today we are not seeing a liquidity problem, we are following credit at the end”, added the BC president during a press interview to comment on the bank’s Quarterly Inflation Report.
He added that the BC has a long-term structural agenda that aims to provide banks with more instruments to capture liquidity, which makes room for the reduction of reserve requirements. The autarchy also aims to facilitate the reduction of earmarked credit, he said.
(Reporting by Isabel Versiani)