RIO DE JANEIRO, BRAZIL - Central Bank Economic Policy Director Fabio Kanczuk on Friday said he does not see a stagflation scenario in Brazil, which would combine an economic stagnation scenario with rising inflation.
"We are acting to bring inflation to the center of the inflation target over the relevant horizon," he emphasized over an online event organized by Goldman Sachs.
Once again, Kanczuk rejected the thesis that Brazil would be entering "fiscal dominance", which occurs when the Central Bank can no longer raise interest rates to tackle inflation. This would exacerbate the country's fiscal imbalance.
"We are far from . . .