Galípolo stated that these effects are new and there is no clarity about their impact on inflation, which increases the BC's “cautious” stance.
“One issue that seems anecdotal, but that has been growing a lot, is the issue of so-called bets, gambling games. Many big names are presenting explanations there to understand the gap that we see between income growth that does not appear in either consumption growth or savings growth,” he said during Warren Day, an event with investors in São Paulo.
Galípolo stated that these effects are new and there is no clarity about their impact on inflation, which increases the BC's “cautious” stance, a word that has been used a lot by the agency's directors, including in interest rate decision announcements.
Despite the BC's vigilance over this exchange rate issue, the director of Monetary Policy once again said that it is wrong to establish a direct relationship between the real's exchange rate level in relation to the dollar and the BC's interest rate decisions. According to him, the monetary authority is also monitoring other variables.
“Establishing this mechanical relationship with monetary policy is a mistake. As I said and will repeat, there are a series of variables that have been bothering us for some time,” he concluded.
Source: GMB
