Brazil central bank stands by inflation target despite forecast gap
Speaking at a press conference, Gabriel Galipolo said the central bank's projections take into account the expected interest rate path reflected in the median estimates from private economists in the Focus survey its conducts weekly.
However, he emphasized that this path does not necessarily represent the rate trajectory the bank will follow.
"There are several paths to reach the center of the target," he said. "We are absolutely committed to it."
Last week the central bank raised its benchmark interest rate by 25 basis points to 15%, a near two-decade high, and signaled a "very prolonged pause" in its efforts to tame consumer prices.
In their policy statement, policymakers had also emphasized they would not hesitate to resume rate hikes if needed.
Galipolo said on Thursday the monetary authority would assess a broad set of indicators, rather than any single metric, when evaluating whether to opt for a new rate increase.
Earlier in the day, the central bank's quarterly monetary policy report projected annual inflation at 3.2% by the end of 2027, still above the 3% target, which has a tolerance band of 1.5 percentage points in either direction.
For the fourth quarter of 2026, the relevant horizon for current policy decisions, annual inflation is seen at 3.6%.
In the same press conference, economic policy director Diego Guillen stressed that the central bank was not extending the horizon to meet its inflation target.
Galipolo also said that this week's foreign-exchange interventions were aimed at addressing a specific issue related to coupons, and did not signal any change in the bank's currency policy.
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