We need to focus on structural reforms, says Campos Neto

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The President of the Central Bank stated that it is necessary to take measures to reduce neutral rates and improve the country’s growth. President of the Central Bank, Roberto Campos Neto. Alan Santos/PR The president of the Central Bank, Roberto Campos Neto, said this Friday (19) that Brazil needs to focus on structural reforms that can reduce neutral rates (those that neither stimulate nor discourage the economy). During a speech at an event promoted by the Central Bank itself, Campos Neto said that Brazil has made almost no reforms when compared to other emerging countries, noting that the numbers already reflect a higher neutral rate, a higher debt and a lower “structural growth”. . READ ALSO Haddad talks about growth and returns to defending the interest rate cut cycle Lula’s government secretary calls for a joint effort to monitor fuel prices INSS beneficiaries can now consult the value of ’13th salary’; see calendar “We spend a lot of time talking about Selic [taxa básica de juros], whether it will go up or down, but when we look ahead, we need to focus on the fact that we need structural reforms,” he said. “We need to do things that lower neutral rates. When I look at all the reforms that are being carried out in emerging countries, I see that here we have made almost no moves in this direction. And we need to do something, because this indebtedness, the higher neutral rate and the low growth are not good for Brazil”, added the BC president. The central banker also reinforced the need for the autarchy to continue to act in the fight against inflation. “We must persevere on inflation and bring it to target,” he added. The event promoted by the Brazilian Central Bank featured names from several central banks around the world. During the panels, most central bankers reinforced the need for financial stability, but without giving up the pursuit of price stability. In a video recorded and presented at one of the panels, the president of the European Central Bank (ECB), Christine Lagarde, stated that even in the face of the economic risks brought about by the recent crisis of confidence in the global banking sector, central banks need to continue acting to lower prices and avoid a possible recession. “Of course, regulators and supervisors still need to be extra vigilant to industry risk. We’re still not safe. But we cannot trade financial stability for price stability. We have to pursue both goals at the same time”, said Lagarde. The banker also added that it is important to note that while financial instability is still just a risk, high inflation is already a reality. “We will do whatever is necessary to achieve your target, which is to bring inflation down to 2%,” she added.

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