Risk Capital Central

Posted December 8th, 2010 by Bryan

But despite all efforts to keep inflation under control, since the market already anticipated non-compliance with the inflation target by the Central Bank of Brazil. Is that the major financial market analysts predict an increase of 6.53% this year, inflation as measured by the Index of Consumer Prices (IPCA). The inflation target is located in Brazil at 4.5% with two percentage points of tolerance. The market expects the Central Bank of Brazil continue with the rate rising cycle until the end of the year. Chief economist for Banco Fator Doria, Jose Francisco de Lima Goncalves, this trend is unclear Central Bank of Brazil: a Creemos that the central bank will continue raising the rate a half percentage point at its next meeting, to take her to a level of 14.25% at the end of yra .

In connection therewith, the president of the Central Bank, Henrique Meirelles, gave a clear signal saying: a The company must be sure and have no doubt that the Central Bank will respond vigorously to changes in inflation. My friends told all these measures have been implemented in Brazil, but when asked a Why is that inflation does not yield? a My answer is much like that of President Lula when he says: a Cuando global inflation is not a homemade solution, when inflation is commodities not have a national solution is necessary to find comprehensive measures to solve a global problem . As one of my friends has investments in Brazil, I immediately asked: a What can happen to inflation in Brazil? a You can probably affect the demand immediate domestic product of the sharp increase in interest rates, but not older regenerates thinking about risks to the economy in the medium and long term because the sound policies which have been applied in Brazil protect the economy, with consequences. Inflation in Brazil is not an issue that can create instability in the economy or affect the strength and growth that is taking the same in the medium term, but is an issue to monitor, as it is doing the Lula government to prevent it from overflowing. We will meet again tomorrow, Horacio Horacio Daniel Pozzo Pozzo holds a BA in Economics and Master in Economics, both studies at the Universidad Nacional de La Plata (UNLP) -. Since 1999 and for three years worked in planning and financial management in the private sector.

He later served as researcher for the Center for Financial Stability where he participated in research projects for the World Bank, the Embassy of Great Britain, the IDB, CAF, among other international agencies, specializing in matters of Corporate Governance and Risk Capital. From November 2005 through November 2007 was part of the staff of Foundation Capital economists specializing in issues of inflation, monetary policy and financial system. Currently teaches Macroeconomics II Catholic University of La Plata (UCALP), serving as acting assistant professor. Author of several articles on monetary and financial system in the literature.

Comments are closed.