BC is piloting monetary policy with a contractionary level in mind, says Galípolo

"When you look at monetary policy, it is obvious that the mandate is to balance supply and demand, and that is why interest rates are at a restrictive level," he said, mentioning that the current monetary policy cycle is more related to internal issues.

The statements were made during the 27th Santander Annual Conference, this Monday (17).

The president of the BC highlighted that the country has, for years, been experiencing growth driven by consumption, based on an increase in income above productivity and the expansion of credit.

Galípolo also mentioned that productivity will be decisive for a sustainable growth cycle.

Concern about credit card use

The credit card, seen as an availability of income, is a concern for the Central Bank, as it creates a snowball effect, with high interest rates, which generates a growing and exponential commitment to income, stated Galípolo.

"It's a special concern, regardless of the moment in the economic cycle," he said.

For the BC president, credit in Brazil had the particularity of having been driven by greater financial inclusion of the population in the post-pandemic period, with Brazilians entering directly into emergency credit lines.

Alckmin: reciprocity process with the US is not retaliation, there is no interest in retaliating

Vice President stated that the reciprocity mechanism does not represent retaliation against the United States and defended the continuity of negotiations to eliminate surcharges. Alckmin also said he believed in an agreement between the two countries, although he asked for patience