Interest rates will have to rise more than forecast in Focus survey – Brazil’s Central Bank president

The Focus projections incorporated into the Central Bank's base scenario point to a 6.25% SELIC at the end of this year and 6.50% at the end of 2022. Campos Neto stated that the neutral real interest rate currently stands at 3%.

RIO DE JANEIRO, BRAZIL - The Central Bank will need to tighten interest rate policy more than projected by the market in the Focus report to ensure that the inflation target is met in 2022, said on Thursday Central Bank President Roberto Campos Neto.

In a press conference, Campos Neto recalled that the Monetary Policy Committee's (COPOM) balance of risks to inflation is asymmetric, that is, the risks of inflation being above projected next year are greater than the downward risks.

"When the balance is asymmetric, it means that you have to raise interest rates above what is projected in . . .

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