Government postpones the first meeting of the year of the National Monetary Council to February

[ad_1]

Meeting was scheduled for this Thursday, but was canceled due to lack of agenda. The meeting gained relevance due to the new composition of the board and topics that may be discussed. The government postponed to February 16 the first meeting of the year of the National Monetary Council (CMN). The meeting was scheduled to take place this Thursday (26), but it was cancelled. “There are no deliberations to be evaluated and/or approved by the CMN this month. The next meeting is scheduled for 2/16”, informed the Ministry of Finance, in a note. By morning, the Central Bank had already indicated that the meeting would be cancelled. The last time this happened due to lack of subjects to be voted on was in May last year. Inflation target The CMN’s first meeting of the year gained relevance due to two factors: the new composition of the council the matters that may be voted on The National Monetary Council is responsible for defining the guidelines for the country’s monetary and credit policy. It is its function, for example, to define the inflation target. President Luiz Inácio Lula da Silva has criticized the inflation target set by the CMN. For the president, a low target makes the Central Bank raise interest rates too much, which inhibits economic growth. This year’s inflation target is 3.25% and for 2024 and 2025 it was set at 3%. In all cases, there is a tolerance range of 1.5 percentage points up or down. The CMN has until June this year to set the inflation target for 2026 and to decide whether to change the targets established for previous years. It is not common for the board to change goals that have already been established, but it can do so if it so decides. Traditionally, the CMN meeting on the inflation target takes place in June – the deadline, according to the decree dealing with the issue. However, nothing prevents the theme from being anticipated. Ordinary CMN meetings are held monthly, always on the 3rd or 4th Thursday of the month. There is also the possibility of extraordinary meetings. Traditional composition Another novelty for this year’s CMN is the return to its traditional composition. In the Bolsonaro government, the council was formed by the president of the Central Bank, the Minister of Economy and the special secretary of the Treasury and Budget. With that, it ends up concentrating powers in the hands of the Minister of Economy, since the special secretary was his subordinate. Now, in the Lula government, the council returns to its original formation, being composed by the Minister of Finance, Fernando Haddad; by the Minister of Planning and Budget, Simone Tebet; and by the president of the Central Bank, Roberto Campos Neto.

[ad_2]

Source link