Rio de Janeiro – The president of the Brazilian Central Bank (BC), Ilan Goldfajn (picture), said this Friday (25) morning that the international scenario turned more challenging. He spoke in the opening of the 20th Annual Seminar of Inflation Targets, at BC’s headquarters in Rio de Janeiro.
“The international scenario has become more challenging and the impacts of movements in the developed economies on emerging economies can be significant. The normalization in the levels of interest rates in some mature economies have been producing adjustments in the price of assets and volatility in the financial conditions in the international market,” said the BC president.
Goldfajn argued that the reactions of the Brazilian monetary policy to external shocks can’t be automatic and said that external shocks must be fought only in the secondary impact they can have on inflation. “It can’t be all or nothing. You can’t ignore the impact of an external shock in our inflation, but also there isn’t a mechanical relation between the external shock and the monetary policy.”
Translated by Sérgio Kakitani
