BC President: Fitch's decision does not create "major impact" on investments
Central Bank (BC) President Alexandre Tombini 
Central Bank (BC) President Alexandre Tombini said Thursday (Dec. 17) in Brasília that he does not feel "great impact" on the cut of Brazil's investment credit rating by Fitch in the flow of foreign investment in the country. He noted that the agency's decision has been received with great tranquility by the financial market and indicated that somehow it was already expected.
"The situation we have been facing in Brazil until the moment is that our balance payment projections indicate a direct foreign investment mounting to $65 billion this year. Our projections have not changed due to the rating," he said during breakfast with journalists at the Central Bank.
According to Tombini, 2015 has been a year of political complexity, with an impact on macroeconomic adjustments.
In the external sector, he pointed out the reduction in 2015 current deficit, which measures transactions between Brazil and other countries. "[Deficit] will post around $40 billion less than in 2014."
For Tombini, the result reflects the country's current situation. He noted that the Brazilian economy "is in recession and the change in relative prices, with a strong dollar and a weak real, consequently reflects in our products' competitiveness. So, the external sector is quickly advancing, impacting the economy, and we note a contribution concerning the gross domestic product (GDP). In ten years, it has been the first time that the external sector makes a net contribution to the domestic product. "
About monetary policy, Tombini said the moment requires belt-tightening, but the goal is to make inflation converge to the target's center of 4.5% in 2017. In 2016, the maximum is 2 percentage points, dropping to 1.5 percentage point in 2017. The center's target remains at 4.5% in both cases.
He mentioned two important issues like the impact on inflation: replacing prices istered by the government and the real depreciation against the dollar.
Translated by Amarílis Anchieta
Fonte: BC President: Fitch's decision does not create "major impact" on investments
