(Bloomberg) — Brazil central bank Monetary Policy Director Gabriel Galipolo hammered home the message that interest rate hikes are on the table as the inflation outlook worsens in Latin America’s largest economy.
Most Read from Bloomberg
The central bank is data dependent and isn’t providing specific guidance for the next monetary policy meeting in September, Galipolo said at an event on Monday. He reiterated the outlook is “uncomfortable” in terms of being able to hit the 3% inflation goal, citing factors including an up-tick in service costs and forecasts for consumer price increases that are above target.
“A hike in the interest rate, yes, is on the table,” Galipolo said at the event in Sao Paulo. “The central bank board will have to see how the situation plays out.”
Galipolo, who is widely seen as President Luiz Inacio Lula da Silva’s choice to become the next central bank governor, has struck an increasingly tough stance on Brazil’s inflation. Last week, he said he sees higher risks of a costlier disinflation process, and added that all directors will do “whatever it takes” to bring price rises to target.
Policymakers paused a monetary easing cycle in June, and traders are betting on rate hikes as soon as next month. Earlier this month, the central bank said it won’t hesitate to raise its interest rate as the inflation outlook worsens.
In July, Brazil’s annual inflation accelerated to 4.5%, the upper limit of the bank’s target range. Analysts surveyed by the monetary authority see consumer price increases above target through at least 2027.
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
Source link : http://www.bing.com/news/apiclick.aspx?ref=FexRss&aid=&tid=66ba6bafbca34c97a66b3dc70c0ed3cd&url=https%3A%2F%2Ffinance.yahoo.com%2Fnews%2Fbrazil-central-bank-director-drives-192441473.html&c=9409576801457853005&mkt=en-us
Author :
Publish date : 2024-08-12 08:24:00
Copyright for syndicated content belongs to the linked Source.