President of the Central Bank of Brazil, Roberto Campos Neto
Paulo Pinto/Agência Brasil
Published 04/19/2024 19:05
The president of the Central Bank (BC), Roberto Campos Neto, said that, despite pessimism, inflation is converging in emerging markets. He highlighted, however, that the perception is that services inflation is still higher than the recommended level.
Campos Neto participates in a meeting with investors in Washington. During his presentation, he highlighted that the concern today is what the last “mile” of disinflation will be like. He reinforced that greater growth is necessary for a more reasonable fiscal scenario in the world.
Regarding the international scenario, Campos Neto repeated that the Federal Reserve (Fed, American Central Bank) has changed its scenario and it will take longer to reach inflationary convergence, especially with the “strong data” that has been released by the United States.
According to him, if inflation continues to rise in the USA, with economic growth, there will not be much stress. However, if inflation remains persistently high for a longer period, it could have an impact on asset prices. He also highlighted that services inflation in the North American economy is above the trend line.
Campos Neto considered, on the other hand, that markets are already reacting to the new reality of high interest rates for longer in the North American economy.
