Brazil President’s Measure Unlikely to Affect BCB Policy: Opus
(Bloomberg) -- Govt decision to allow workers to withdraw inactive accounts from savings fund known as FGTS may fail to change pace of BCB rate cuts, Jose Marcio Camargo, chief-economist at Opus Gestão de Recursos, says in a phone interview.
- BCB’s more likely decision continues to be a 50bps cut in January; a 75bps decrease is possible if inflation and activity drop further, but it would be “very difficult”
- The estimated volume of BRL30b released with the measure may be significant for people to curb their debts, but it is not big compared to the total estimated BRL6t of the GDP, Camargo says
- “Brazil at this moment is not suffering from an excess of demand, yet is facing high production gap and unemployment”
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HALISTER1Source: BFW (Bloomberg First Word)
People Jose Camargo (Opus Gestao de Recursos Ltda)
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