Figueiredo: Raising the Inflation Target can be Expensive
Economic discussions have been guided by recent statements by President Lula and Finance Minister Fernando Haddad on raising the inflation target. For Luiz Fernando Figueiredo, chairman of Jive Investments and former head of the Central Bank, even if there is this discussion of rising inflation in Brazil and around the world, it is a matter of choice. “You can do it, but you will pay more,” Figueiredo said.
Another point that could increase interest spending in Brazil is a possible change in central bank independence. Figueiredo does not believe there will be any changes in the legislation and knows that the government is still making a “speech from the podium”. But he still added: “Just to remind you, there’s seriously no country that doesn’t have an independent central bank,” he said.