THE National Monetary Council of Brazil voted to adopt a new inflation-targeting regime in 2025, which allows the Central Bank to have one fixed inflation target rather than changing the said target periodically.
The National Monetary Council currently sets annual inflation targets that must be met per calendar year.
Meanwhile, reports citing Brazilian Finance Minister Fernando Haddad in a press conference said that from 2025, the said model would shift into a continuous horizon, which, in practice, will imply a 24-month period to assess the target compliance.
It can be remembered that the annual inflation rate was 3.40 percent in mid-June, meanwhile, the Selic rate— is currently at 13.75 percent, and the existing inflation target regime has been in place since the year 1999.
The new regime, which is widely used by monetary authorities in developed nations, will start in 2025, which will give the Central Bank more space to adjust the monetary policy to economic cycles.
