Will the inflation target change?

Will the inflation target change? All sectors of government are important, but what moves the economy is what is under constant surveillance.

When it comes to inflation, those with more experience will remember the suffering the country went through before the Real plan.

This memory, albeit distant, makes people worry about inflation in the country. In this way, everyone is aware of the inflation target established by the economic team.

A few days before the first meeting of the National Monetary Council, this discussion was made public. Will the inflation target change?

What are the consequences of a change in the inflation target? All this we will think together here.

What is the opinion of the President of the Central Bank?

At first, an opinion that everyone was waiting for on this subject is from Roberto Campos Neto, president of the Central Bank.

In an interview for the Roda Viva program, Roberto Campos Neto said that he is not currently studying any change in the inflation target.

Today the inflation target is set at 3.25% for the year 2023. The tolerance is 1.5% either up or down.

Thus, inflation could reach 4.75% , or 1.75%. At least this is what the Central Bank expects.

He also said that raising the target at a time when the country is not reaching the target, it will ask for an even higher risk premium.

Thus, in addition to not gaining flexibility, you would end up losing. That would not be good for the country.

What Roberto Campos Neto expects is that an environment of tranquility is established before any change. The goal needs to be easily achieved before changing it.

Lula is not happy with the conduct of the Central Bank

The president of the republic Luis Inácio Lula da Silva has been criticizing the monetary policy adopted by the Central Bank.

Even questioning the basic interest rate (Selic), at the time the rate was maintained at 13.75. At least that was the decision of the Monetary Policy Committee.

Roberto Campos Neto's life must not be easy, many of the president's allies question his bond with Jair Bolsonaro.

Former President Jair Bolsonaro was the one who nominated Roberto Campos Neto for the presidency of the Central Bank. His term runs until the end of 2024, if nothing changes by then.

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Despite the statement by the President of the Central Bank, the inflation target could still change. On February 16th, a meeting will take place, so that the decision can be made, whether or not to increase the target.

Roberto Campos Neto will participate in the meeting, in addition to him, the Minister of Finance Fernando Hadad (PT). The meeting will also be attended by the Minister of Planning and Budget Simone Tebet (MDB).

The president of the Central Bank made it clear that the government is the one who makes the decision on raising the inflation target. That he and his team only contribute technical data.

Finally, will the inflation target change? We will only know after the meeting on the 16th. We know, however, that this will directly affect consumer prices.