National Monetary Council will not discuss change in inflation target for 2024, says Tebet

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CMN is composed of the Ministers of Finance and Planning and the President of the Central Bank. Council is meeting from 15:20 this Thursday (29). The National Monetary Council (CMN) will not discuss a change in the inflation target for 2024, said this Thursday (29) the Minister of Planning and Budget, Simone Tebet. “We are not discussing 2024. We are discussing 2025 and 2026. We are not talking now about changing the inflation target, we are discussing other issues,” she said during the event in Eurasia, this Thursday morning (29). The CMN has been meeting since 3:20 pm to define the inflation target for 2026. According to the Minister of Finance, Fernando Haddad, the change in the inflation target regime would also be discussed. Haddad argues that the regime should be continuous, defined for the next 12 months or for a longer period, but without a fixed period. Today, the target is defined for the accumulated inflation in the calendar year — that is, from January to December. With monthly meetings, the CMN is chaired by the Minister of Finance, Fernando Haddad. Also on the board are the Minister of Planning, Simone Tebet, and the president of the Central Bank (BC), Roberto Campos Neto. Earlier, Campos Neto stated that a BC study showed that the adoption of a continuous inflation target “is more efficient”. The CMN may set the inflation target for three years ahead by June. For example, the 2023 target was set in 2020; that of 2024, in 2021; and 2025, in 2022. The next inflation targets are: 2023: 3.25%, with a tolerance interval of 1.5 percentage points. It will be considered fulfilled if inflation is between 1.75% and 4.75%; 2024: 3%, with an interval of 1.5 percentage points. It can vary between 1.5% and 4.5%; 2025: 3%, with an interval of 1.5 percentage points. It can vary between 1.5% and 4.5%.

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