According to Gita Gopinath, who participated in an event promoted by British Columbia, inflation in Brazil is “a little bit stronger than in other countries.”
Deputy Managing Director of the International Monetary Fund (International Monetary Fund), Gita Gopinathsaid this Wednesday (5/17) that inflation in Brazil is “a little bit stronger” than in other countries.
Gopinath, when participating in an annual conference promoted by the Central Bank (BC), praised the performance of the monetary authority to control inflation in the country.
The Deputy Managing Director of the International Monetary Fund highlighted the fact that inflation expectations are “back within the target set by central banks”. “In Brazil, we continue to see inflation a little bit stronger than in other countries,” he said.
Long before other countries, Brazil realized that sustained inflation could come from high levels of demand. It was one of the first countries to raise the base interest rate, said the IMF executive director.
Gopinath also mentioned in his speech that “the risk of higher inflation in the world than in the past” is now. Inflation can be controlled through monetary policy. He said it was important to use these tools.
However, according to Gopinath, monetary policy action “depends on inflation expectations.” “It is important to maintain the credibility of central banks until the expectations are proven,” he said.
