MNI BRIEF: Brazil Inflation Progress To Target Slows-Galipolo

Central Bank of Brazil Governor Gabriel Galipolo said Monday that the resilience of economic activity is causing a slower convergence of inflation toward the 3% target, making it necessary for policy to remain restrictive.

" It’s necessary to preserve the gains seen in the labor market over recent years, because inflation erodes and undermines those gains," Galipolo said at an event sponsored by Fundacao Fernando Henrique Cardoso (FHC), in Sao Paulo.

"With a 15% rate, the goal is to slow the economy, so it grows more than expected, but less than in the past," he added, noting "there’s still a long way to go in terms of inflation. The BCB held its interest rate at 15.00% last week. (See MNI INTERVIEW - BCB To Hold Rates Until Q1 2026 - Schwartsman)