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Investing.com -- Brazil’s central bank chief Gabriel Galipolo reaffirmed his commitment to the country’s 3% inflation target during a Senate hearing on Tuesday.
Galipolo emphasized that the central bank is obligated to use interest rates as a tool to pursue this inflation goal, pointing out that annual inflation has remained above the target every month since he assumed leadership of the monetary authority in January.
"Inflation target is 3%, that’s what I have to aim for," Galipolo stated during the hearing. "In no way will this be a central bank that disregards the legal mandate to pursue the inflation target."
The central bank chief also requested Senate support for advancing a constitutional amendment regarding financial autonomy for the central bank.
"I ask the Senate for help so that we can move forward with the constitutional amendment on financial autonomy for the central bank," Galipolo said. "We just want the central bank to have the same conditions as central banks in emerging countries."
He added that this point is "essential for addressing concerns that have arisen with the increased use of technology in the financial system."
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