Brazil’s central bank president Ilan Goldfajn sat down for an interview with Bloomberg on Thursday in his office in Brasilia. He discussed expectations for fiscal austerity measures and the conditions that must be met before his board can cut the benchmark interest rate.
Monetary Policy
Goldfajn said policy makers are monitoring investor perception of risk in the Latin American country as one of the conditions for monetary easing.
When fiscal adjustment is on the right track, “you’ll immediately see that Brazil’s country risk — as measured by credit default swaps, the Emerging Markets Bond Index and risk premium — will fall,” he said. “Inflation expectations will improve, and all that will give me a signal that we are addressing the fiscal question.”
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