Central Bank Governor predicts inflation target at 3% in the 'long term'

This Tuesday (31), Brazil’s Central Bank governor Ilan Goldfajn predicted a drop in the country's inflation target in the 'long term'. The forecast is that rate will reach 3% a year, similar to that of other emerging countries. However, he pointed out that the goal at the moment is to meet the 4.5% inflation target established for 2017.

“In the long term, we should move towards a target compatible with other emerging economies, whose inflation is at around 3% (per year). For now, we're focusing on the target, which is of 4.5%", he said at an investor conference in São Paulo. The event was also attended by President Michel Temer, who presented indexes that point to a positive evolution of the country's economy.

Goldfajn also told investors that the Central Bank has recently introduced the BC+ working agenda, with measures organised in four pillars: increasing financial the literacy of citizens, enhancing the legal framework that governs Central Bank operations, creating efficiency gains for the financial system and reducing the cost of credit.

Microeconomy

In his address, the Central Bank Governor detailed measures being taken by the government to make credit cards more efficient and reduce rates. “We have recently adopted measures that will improve competition, like universalising access, making it legal to charge different prices depending on the form of payment and limiting the maximum period revolving credit can be used for credit card debt payments”, he stated.

For Goldfajn, consumers that use revolving credit for several months 'do not do anyone any good”. He added that “Revolving credit is for emergencies, and not a credit line to be used all the time”, he mentioned.