Inflation forecasts have risen with the ‘noise’ of Brazilian aid

Campos Neto said the institution will use all existing instruments, if necessary, so that inflation is anchored in the medium and long term. Photo: Raphaël Ribeiro / BCB

The president of the Central Bank (BC) attributed the prospect of an increase in inflation for the next year, made by the financial market, to what he called “noises” around Auxílio Brasil. For Roberto Campos Neto, other measures, such as the PEC for court decisions, also made the market expect to be above the target set by the CB. “We recognize that there is a lot of noise around the Bolsa Família and the new measures that the government has announced,” Neto said, during a virtual event promoted by Bradesco BBI on Tuesday (17). The Central Bank forecasts that inflation should remain within the target of 3.5% in 2021. For the financial market, it expects a value of 3.9%.

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