SAO PAULO (Reuters) – Brazil’s central bank will do what is “necessary” to get inflation under control, monetary policy chief Gabriel Galipolo said on Thursday, but policymakers will decide whether that actually happens based on data.
At a meeting in Belo Horizonte, Galipolo said the minutes of the July 30-31 meeting of the central bank’s interest rate committee, known as Copom, made it clear that all policymakers are prepared to do whatever it takes to get inflation under control, including those appointed by President Luiz Inacio Lula da Silva, who has been loath to raise interest rates.
Copom indicated in the minutes of the meeting that its members are open to raising rates if necessary. However, Galipolo indicated that this should not be seen as a guideline for the further steps the organization takes.
According to Galipolo, Copom has not yet given any signal about what will be decided in future meetings, as the monetary authority is still “completely dependent on the data.”
(Reporting by Luana Maria Benedito; Editing by Leslie Adler and Brendan O’Boyle)
