Haddad and Campos Neto discuss change in inflation targets

The Minister of Finance, Fernando Haddad, and the President of the Central Bank, Roberto Campos Neto, met this week to discuss the inflation target, which, for this year, is 3.25%, with a tolerance interval of 1 .5 percentage points.

They talked about the debate, both in the market and in universities, about the effect of a change in monetary policy objectives on the expectations of economic agents.

One of the possibilities under analysis, according to “Folha de São Paulo”, is that the goal be considered in a period of 12 months and not for the calendar year. Only Brazil and Türkiye adopt this methodology.

According to Haddad, there is no intention of bringing forward the meeting of the National Monetary Council (CMN), scheduled for June, to discuss possible changes in the inflation target. The CMN is integrated by him; by Campos Neto and by the Minister of Planning, Simone Tebet.

BC autonomy

Haddad highlighted that he needs to deal with a new scenario, which is the autonomy of the Central Bank, and that his objective is to build a relationship of partnership and trust to advance towards the same objectives.

“I know about the noise, I read the newspapers, I know that things are moving forward. We are creating the conditions for this harmony [com o BC] establish itself once and for all”, said Haddad at a Bradesco BBI event.