The director of Monetary Policy at the Central Bank (BC), Gabriel Galípolo, said this Tuesday, 26, that the positive surprises with economic activity and the behavior of inflation suggest that Brazil can grow more with less inflationary pressure. During his participation in the J. Safra conference, Galípolo cited the unusual upward movement of economic growth and downward inflation, despite the resilience of the job market to monetary tightening.
This combination is, according to the BC director, an indication that the country would have improved its potential Gross Domestic Product (GDP).
Galípolo highlighted Brazil’s privileged position in attracting new investments both due to its clean energy matrix – which reduces the cost of the transition and, consequently, its impact on inflation – and due to the robust position, in relation to other emerging countries, of international reserves, which demonstrates the solvency of the Brazilian economy.
He also recalled that funding in the capital market is returning to finance new investments.
He insisted, on the other hand, that the country needs to advance the reform agenda to increase its growth potential and ensure the conditions for the interest rate to fall to a lower level for longer.
When talking about tax reform, the BC director considered that the proposed constitutional amendment is well underway. “We managed to produce a great consensus on tax reform,” he said. “It’s a victory for society,” added Galípolo.
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