The end of the annual discussion on the inflation target is a milestone

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The Minister of Finance, Fernando Haddad, announced this Thursday (29) that the government decided to change the inflation targeting regime. The target will be continuous at 3% from 2025. Ana Flor on GloboNews live Reproduction/GloboNews The change in the inflation targeting regime, which will be continuous at 3% from 2025, is considered a milestone for the country, according to financial agents, found the blog. With the decision, Brazil now walks with other countries. The measure retires the current format, which takes into account the calendar year – that is, from January to December. This means that the target will be set to a “relevant horizon”, with no fixed timetable. Finance Minister Fernando Haddad told the blog that he considered the previous format a jabuticaba tree. The decision was also praised because it is not an abrupt change. It will only come into effect when the mandate of the current president of the Central Bank, Roberto Campos Neto, ends. This demonstrates how the entire economic and monetary policy is being conducted in an integrated manner. Simone Tebet, Haddad and the president of the Central Bank spoke and the decision was unanimous. Brazil is on a par with other countries and this paves the way for more predictability – which all financial agents around the world like, even when deciding where to invest. Now, it is waiting for the credit market to react. Interest rates are essential factors, but the country will need growth for credit to resume strongly. The decision of the National Monetary Council (CMN) puts Brazil on another level, more stable in terms of inflation target.

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