Overview
- Gabriel Galípolo said the bank will hold interest rates at the level and for the time required to bring inflation to target.
- He described a slow, gradual cooling of activity with resilient employment, which reduces the risk of a sharp downturn but delays disinflation.
- Despite a 15% Selic, credit continues to expand “surprisingly,” prompting what he called a vigilant and conservative policy posture.
- He highlighted October’s new housing funding model to shift mortgages toward market rates and strengthen monetary transmission, alongside a structural decline in savings deposits among younger investors.
- He said perceptions of fiscal stimulus are feeding unanchored expectations and help explain gaps between market and Central Bank projections, with election-year dynamics adding volatility.