The statement from Monetary Policy Committee (Copom) released at the end of the last meeting of 2022 brought little news in relation to the previous text, other than showing concern about the fiscal risk🇧🇷 The alert made by central bank refers to potential impacts on asset prices, in particular the dollar🇧🇷
“The BC is especially keeping an eye on the inspector and the Transition PEC🇧🇷 If you notice that the PEC can trigger a currency devaluation, which has an impact on the inflation future, and may lead the Copom to act again”, explains Marília Fontes, founding partner of Nord Research.
BC ‘copy and paste’ message
For her, this section was the highlight of this month’s Copom. “The communiqué was practically a ‘copy and paste’ of previous communiqués and minutes, except for the paragraph that talks about the balance of risks and mentions special attention to the future development of fiscal policy”, she reiterates.
Today, however, the dollar closed down 1% against the real, in reaction to the text approved yesterday at the CCJ and sent to the full Senate. The move was also in line with overseas currencies.
Learn more at: Dollar: Why does the currency fall if the Transition PEC bothers you so much?
Source: Moneytimes
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