In the minutes of the Copom meeting, the Central Bank does not indicate an interest rate cut, but cites improved expectations.
The Central Bank still maintains that the fiscal framework to be presented by the government may not directly impact inflation control.
247 with Reuters - The Central Bank released on Tuesday (28) the minutes of the last meeting of the Central Bank Monetary Policy Committee (Copom), which ended on March 22. On that occasion, the committee decided to maintain the interest rate at 13,75% per year, ignoring the appeals of the Lula (PT) government and compromising Brazil's economic growth.
The Central Bank believes there is no direct mechanical relationship between the presentation of the new fiscal framework and the convergence of inflation to the targets, but a solid text can improve expectations and generate a disinflationary process, according to the minutes.
The document highlighted that the commitment to implementing the Finance Ministry's fiscal package, already identified in fiscal statistics and the reintroduction of fuel taxes, mitigates the fiscal stimulus on demand, reducing the risk of high inflation in the short term.
"The behavior of expectations is a fundamental aspect of the inflationary process, since it affects the definition of present and future prices and wages," he said.
The Central Bank decided to keep the Selic rate at 13,75% per year at a meeting last week, without giving a concrete signal about a possible monetary easing in the future, contradicting market and government expectations for an indication of when it could begin cutting the benchmark interest rate.