Ibovespa operates in decline, waiting for CMN meeting and Campos Neto interview

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On Friday, the main index of the Brazilian stock market rose 0.07%, to 108,078 points. Ibovespa operates high this Tuesday. Pixabay The Ibovespa, the main index of the São Paulo stock exchange, the B3, operates in decline this Monday (13), awaiting the first meeting of the new government of the National Monetary Council (CMN) and an interview with the president of the Bank Central, Roberto Campos Neto, amid speculation about a possible change in the country’s inflation targets. At 10:21 am, the Ibovespa fell 0.43%, to 107,613 points. See more quotes. On the previous day, the Ibovespa advanced 0.07%, to 108,078 points. With the result, the index began to accumulate falls of 4.72% in the month, 1.51% in the year and 0.41% last week. Lula raises attacks on Campos Neto while government and BC wave a truce What is messing with the markets? Around here, attention remains focused on rumors that the economic team is evaluating an early review of the country’s inflation targets. The National Monetary Committee (CMN) meeting that will discuss the inflation target for 2026 is scheduled for June – but it may be brought forward and review the targets already established for previous years. The markets have been very sensitive to President Luiz Inácio Lula da Silva’s (PT) criticism of the Central Bank, which has increased volatility in recent days and reinforced more pessimistic positions by local investors. The independence of the BC was established, by law, in 2021, and establishes the four-year term of office for the president of the BC and aims to shield the body from party-political pressures. Financial market economists raised their inflation estimates for this year and also started projecting a smaller drop in the basic interest rate, the Selic. For this year, the inflation expectation increased from 5.78% to 5.79% in the ninth consecutive rise of the indicator. In 2023, the central inflation target was set at 3.25% by the National Monetary Council (CMN) and will be considered formally met if it fluctuates between 1.75% and 4.75%. If confirmed, this will be the third year in a row that the inflation target has been exceeded, that is, in which the IPCA is above the ceiling set by the target system. In 2022, inflation amounted to 5.79%. Currently, the Selic rate is 13.75% per annum. The Copom has also been signaling that interest rates will remain high for a longer period. The financial market raised expectations for the economy’s basic interest rate, the Selic, from 12.50% to 12.75% per year by the end of 2023. Initial plugin text

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