Special Report: Inflation Targeting Regime in Turbulent Waters.
The National Monetary Council (CMN) voted on the new format of the inflation target. This report emphasizes the importance of a continuous inflation target with accountability and suggests how to implement it. Additionally, it highlights the risks of a hasty discussion on revising the inflation target center. In the context of unanchored inflation expectations and high interest rates, gaining credibility for the BCB seems to be a laborious solution but one that does not generate additional costs. Finally, it presents a retrospective on how we arrived at today’s unanchored inflation expectations.
For more information, please check our Special Report.
