Brazil’s central bank has set new rules for meetings between its board and outside institutions to make communications clearer as investors worry about inflation control.
Private meetings will ideally be in-person and can’t be recorded, except for those with more than 15 participants, which must be open to the press. An outside organization can only meet with the central bank once every 60 days.
This decision was partly influenced by an April meeting where Governor Roberto Campos Neto changed the bank’s policy unexpectedly in front of the press. The new rules aim to make meeting schedules more predictable for important policy statements.
The central bank is under scrutiny as inflation forecasts are rising above target. President Luiz Inacio Lula da Silva has criticized the bank for high borrowing costs, and investors worry the bank might go easier on inflation control when a new governor and two directors are appointed later this year. Traders are expecting possible rate hikes by September.
The central bank also announced that board members will meet weekly, instead of monthly, with economists who participate in its analyst survey, Focus. This change aims to better understand economic analysts’ views and projections throughout the quarter and will start this half of the year.
On Wednesday, the central bank kept the Selic rate unchanged at 10.5% for the second consecutive meeting. They noted that inflation risks are present in both directions but mentioned factors like a weak real, above-target inflation forecasts, and strong services are pushing prices up.
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