Monetary Policy At Stake, Says Central Bank

News: The Brazilian central bank has claimed that the future of the country's monetary policy would be compromised if the Supreme Court rules in favour of depositors seeking reimbursement for losses related to government policies that were adopted to fight hyperinflation in the 1980s and 1990s. 'If the Supreme Court deems the government's economic plans unconstitutional, the state will have to rethink the way in which it conducts monetary policy,' Isaac Ferreira, the central bank's prosecutor, said (Bloomberg). The central bank has estimated that banks would be required to pay BRL149bn (US$64.3bn) to depositors and to reduce lending by as much as BRL1trn (US$431.54bn) if the court rules against them.

This article is tagged to:
Geography: Brazil

Enter your details to read the full article

By submitting this form you are acknowledging that you have read and understood our Privacy Policy.