Will the inflation target change?

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

When it comes to inflation, the most experienced will remember the suffering the country experienced before the Real plan.

This memory, although distant, makes people worry about inflation in the country. 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 became public. Will the inflation target change?

What are the consequences of a change in the inflation target? Let's think about all of this together here.

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

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

In an interview with the Roda Viva program, Roberto Campos Neto said 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% whether up or down.

In this way, inflation could reach 4.75%, or 1.75%. At least this is what the Central Bank hopes.

He also said that increasing the target at a time when the country is not reaching the target will require an even higher risk premium.

So, in addition to not gaining flexibility, you would end up losing it. This would not be positive for the country.

What Roberto Campos Neto hopes is that an environment of tranquility is established before any changes are made. The goal needs to be easily achieved before changing it.

Lula is not happy with the Central Bank's conduct

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

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

Roberto Campos Neto's life cannot be easy, many of the president's allies question his link 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 what the President of the Central Bank has said, the inflation target could still change. A meeting will take place on February 16th, so that a 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 increasing 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.