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Montevideo, June 7th 2023 - 08:19 UTC



Brazilian Central Bank communication triggers confusion in financial markets

Friday, February 12th 2021 - 09:57 UTC
Full article 31 comments
Campos Neto said markets had mistakenly taken this to mean these members wanted to raise interest rates at a meeting, and not at the next meeting in March Campos Neto said markets had mistakenly taken this to mean these members wanted to raise interest rates at a meeting, and not at the next meeting in March

Brazil's Central Bank chief Roberto Campos Neto admitted on Thursday that the January interest fixing rate policy meeting release may have generated more confusion in financial markets, instead of more transparency in communications.

Minutes of the January 19-20 meeting of the bank's rate-setting committee, 'Copom,' showed that some members said it should “consider starting a process of partial normalization, ”reducing the extraordinary degree of monetary stimulus in the economy.

In an online webinar hosted by JP Morgan, Campos Neto noted that markets had mistakenly taken this to mean these members wanted to raise interest rates at that meeting, and not at the next meeting in March.

”If you had members that actually thought that we should have increased in January, they would have voted for that (before) and been very clear,“ Campos Neto said.

”So for us, it was kind of implied that when we mentioned that, people would understand that as being March, not January. We understand that we could have been more clear about that,“ he said.

Copom kept its benchmark Selic rate at a record low 2.00% last month, but withdrew its 'forward guidance' pledge and some members signaled their preference to raise rates.

Against a backdrop of sticky inflation, markets reacted accordingly and began to price in a more aggressive rate-hiking cycle this year starting earlier than previously forecast.

Campos Neto said that was a clear example of how markets should not take transparency or dissent within Copom as an imminent policy signal, although he recognized that there was greater room for misunderstanding and confusion.

”We always knew that there was a trade-off between being more transparent and giving confusing signs. When you plan to be more transparent in a more linear way, you can plan as linear as you want. But the perception won't be linear,“ he said.

”The dissent was used as a sign of policy. We were very clear that that was not a sign,” Campos Neto added.

With information from Reuters

Categories: Economy, Politics, Brazil.

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  • Chicureo

    Weather in the Aconcagua Valley today is perfect and noticeably slightly cooler than in January. Temperature is currently 24°c with an expected 13°c low (75°-55°f) with blue sky.


Unfortunately for our prolific Canadian contributor Teresa Hill — she is experiencing the worst Winter polar vortex plunging many Canadian cities to temperatures of minus 32⁰c (-25⁰f) and I imagine her misery.

    Although cheap vodka may keep her feeling warm — I sincerely urge her to seek help at:

    Today’s lunch was fun as we prepared slider-cheese burgers for the grandchildren and made fresh nectarine ice cream which we enjoyed in the garden.

    Reviewing the irrefutable facts that the mendacious Teresa Hill cannot deny:

    1. She resides in the “lower level” of her mother’s home in Canada.

    2. She extolled drinking her own urine (in 2015) saying it was healthful.

    3. She and Jack debated about her falsely claiming to visit Brazil.

    4. She was actually boasting to Jack about her attachment to Long Dong Silver.

    5. She’s weirdly triggered by filthy Brazilian toilet paper.

    6. She’s a liar about serving in the RAF during the 1962 Cuba Missile Crisis.

    7. Apparently she’s transitioned herself to another sexual gender.

    8. Despite her teetotalism, she clearly identified herself as a closet alcoholic.
9. She’s unemployed and has access to over 350 television channels.

    10. Her favorite cuisine is prepared in her mother’s microwave.

    11. She’s habitually rude and potty-mouthed spewing profanity.

    12. Teresa profanely confirms herself is an expert “c*cksucker.”
13. Temperatures Teresa reports obviously are negative below zero.

    14. Teresa frequently extols WWII mass-murderers as her idols.

    By the way, Jack Bauer sends his affection and encourages Teresa to admit her mendacious lies about the Brazilian military and Lula.


    Feb 15th, 2021 - 07:04 pm 0
  • Chicureo

    Jack Bauer

    There again Teresa goes into a bizarre tirade and wild rage about factual proof about her mendacious nasty personality.

    I this last rant — she’s missed going into hysterics about your country's filthy-toilet-paper issue again. Teresa doesn't seem to understand that Brazilian facilities reflect a wide range of sanitation from primitive to the highly sophisticated.


As of course — Teresa is hilarious claiming she's actually visited Brazil yet has been proven she hasn't.


Meanwhile, I already opened this evening’s marvelous Carménère elixir and savoring its wonderful content while getting ready to grill in the garden quincho for an early meal with the grandchildren.

    Looking into my intoxicating dark red wine with the turquoise sky now at this precise moment beginning to fade — I would remind Teresa that she herself began the unkind discord by incessantly attacking Pugol-TTWH, Jack Bauer and myself with ridiculous outrageous as well as mendacious accusations.

    In fact — as she viciously attacked our enjoyment of living life — it became very apparent of her hypocrisy as she is clearly a closet alcoholic.

    Teresa’s problem is a serious issue in Canada:

    (Just by the first heading of each of her nasty posts she falsely accuses me and others of ridiculous slander.)

    Teresa has repeatedly attacked my personal specific enjoyment of harvesting nutritious Summer fruit to share with people during their Winter and still does not understand that I greatly enjoy working in the countryside.

    Even as recreation — Madame and I love working the soil of home gardening as fun.

    There is absolutely no reason to deride the farmers of the world providing food — including to the many ignorant people who think their food source originates in supermarkets.

    After all we're just humble campesinos in Chile — providing needed employment for our people from carbon absorbing and oxygen emitting superfood avocado orchards.


    Feb 15th, 2021 - 09:56 pm 0
  • Terence Hill

    Jack Bauer Proof less & Truth less

    “from 22° to 28º in the blink of an eye.” That's a load of bollocks as there is substantial time
    difference, which is why you have omitted any of the times on my posts.
    At present 30° RealFeel® 34°
    So all you can produce is your old discredited fantasies.

    Feb 17th, 2021 - 04:16 pm 0
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