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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: THE ANT who wrote (95877)	10/26/2012 8:41:40 AM
From: elmatador	Read Replies (1) \| Respond to of 218673

BC Tombini's message:BC can raise rates if needed' October 26, 2012 \| 3h 11 RICARDO LEOPOLDO - O Estado de S. Paulo The president of the Central Bank (BC), Alexandre Tombini, made two days ago her second longest speech of the year, in which he defended with great force that the system of inflation targeting is the main framework that BC has to take the IPCA goal of 4.5%. In assessing the professor at the Pontifical Catholic University of Rio de Janeiro (PUC-RJ), Monica Baumgarten of Bolle, this pronouncement was very important to society and try to pass the message that BC has full control of monetary policy and will use it to raise rates if necessary. The following are key excerpts from the interview. What messages Tombini wanted to pass economic agents? The speech was made to many entrepreneurs. There was a concern raised with the government's lack of response of investment in the country, despite all the official measures taken to stimulate activity.In my view, there is a great concern of BC to try to mitigate any uncertainty about economic policy. That BC would not be committed to the system of inflation targets? Right. Emphasize that monetary policy in Brazil has not changed. Given the changes that have occurred in the world, had some discomfort from several experts that the BC would be using slightly different tools to moderate activity level, as macroprudential measures, which ultimately serve to give a tightening in lending. Tombini's speech was meant to say: our instrument remains the same. That is, the main tool for managing the activity level is interest. With this speech, Tombini want to better coordinate inflation expectations for 2013, which are at 5.42%? Certainly, this intention is also very relevant. There is another important issue that is addressed by the BC nonlinear convergence to the target of 4.5%. On the other hand, makes no consideration about how important is to reach the goal faster. What he says is that in all the years we managed to achieve the target. Tombini signals when it is right.For me, the Fed signals that even tolerates fluctuations in inflation above the central target, but is committed to not letting the IPCA overcome the ceiling of 6.5%. Tombini said the devaluation in the first half "impacted inflation, particularly the tradable sector." What he meant by that? I think the Fed is saying we have to be careful with the devaluation, because it has an impact on inflation in Brazil. Earlier this year, a portion of that devaluation of the exchange rate had to do with the world scenario, but also with the very heavy interventions by the Ministry of Finance. That dried up the foreign exchange market and caused effects on prices. However, the BC signals, basically, we're a little bigger with interventions in the foreign exchange market because the world situation requires, but it is temporary. How is the interest rate path by BC to the end of 2013? Since inflation to stay around 5.5%, the trend in BC is keeping interest rates stood at 7.25%.

To: THE ANT who wrote (95877)	10/26/2012 9:14:40 AM
From: Metacomet	4 Recommendations Read Replies (2) \| Respond to of 218673

To: THE ANT who wrote (95877)	10/28/2012 12:24:51 AM
From: Metacomet	Read Replies (1) \| Respond to of 218673

cognition is my specialty. Really You spout gibberish in incoherent run on sentences and we are to believe you have a tie to reality You are a simple religious fanatic who has found an appreciative audience of similar minded fools Rave on, your observations mean naught to any reasoning being