Central Bank President Gabriel Galipolo said the labor market in Brazil is “the most lush” of the last three decades. He also said that by market expectations, inflation is not seen reaching the goal at least until 2028.
The statement was made on Monday (6) during a lecture given at the Fernando Henrique Cardoso Institute in São Paulo.
“The historical series implies that we may be in full employment. We have quite strong data of what is happening [em relação a isso]. The salary and real yield has a very sharp high in this regard. So I think it’s hard to say that we don’t have, probably, the most exuberant job market we have seen in the last three decades, ”said the BC president.
Galipole said, although for the country to continue growing without inflationary pressure, it is very important that this growth is due to increased productivity. “But for a productivity that allows us to have a sustainability, [de forma a termos] A longer duration in this growth, ”he added.
He reiterated that the elevation of interest is due to inflationary pressures. “We know that 15% is a high interest rate, but realize the situation we had in April: 57% of the items that make up the IPCA were over double the inflation target,” he said.
“We do not see inflation in the goal in any of the horizons, not until 2028, by the expectations of Focus. It is obvious that the BC has its own projections. And we incorporate all these projections. Within the expectations of Focus and within our projections, this is an indication of quite discomfort,” he added.
