On August 28, Roberto Campos Neto, President of the Central Bank (BC), attended a public hearing arranged by the Senate Economic Affairs Committee to discuss the outlook for monetary policy in Brazil, during which he stressed the importance of the Central Bank’s autonomy and the need for a Financial Intelligence Unit (UIF) to combat illegal activities in the financial system. 

To access Campos Neto’s speech and presentation, click here and here.

At the public hearing the senators and the President of the Central Bank discussed monetary policy guidelines, their implementation and future prospects, and the information received on credit policies in the country. Campos Neto provided a description of the current scenario in the context of the international economy and inflation control, which, according to him, will lead to gradual economic growth.

In terms of credit and capital markets, the official announced that the institution will work to facilitate corporate credit, focusing on real estate credit and infrastructure financing. In addition, the institution will foster the development of a private market for long-term currency hedging.

Campos Neto also highlighted the importance of the Central Bank’s autonomy in contributing to market development. In his words: “the market needs to free itself from the need to finance Government, and finance entrepreneurship instead”. He said of the recent transfer of the Financial Intelligence Unit (UIF) to the Central Bank, that it will offer “greater safeguards against possible pressures from political or economic powers,” adding that its creation represents an important step both in international integration and “in creating financial intelligence aimed at combating illegal activities in our country.” 

Finally, Campos Neto called on Congress to drive a bill from the Executive granting the Central Bank technical autonomy, which has not yet been discussed although it was introduced earlier this year.