“Credibility takes a long time to gain and is quickly lost”, says BC president | Economy

Campos Neto stated that the government needs to create a favorable environment for the resumption of business
Marcello Casal Jr/Agência Brasil

Campos Neto stated that the government needs to create a favorable environment for the resumption of business

The president of the Central Bank, Roberto Campos Neto, said this Wednesday (1st), at a public hearing in the Chamber of Deputies, that Brazil depends on private resources to resume economic growth and, for that, it needs to build credibility with the market agents.

Campos Neto was heard at the Finance and Taxation Commission, where he dealt with the economic scenario. “The government does not have the resources to make this exit [da situação atual] with public resources. So it needs to generate credibility to do it with private resources”, he stated. “And credibility is something that takes a long time to gain and is lost very quickly,” said Campos Neto.

On Wednesday, IBGE released the performance of the economy in the second quarter of 2021, which remained practically stable, with a negative variation of 0.1% compared to the previous quarter. Campos Neto stated that the performance came “more or less” in line with the BC’s expectations, but acknowledged that the year should have a slightly lower growth. “It’s still within what we imagined. The important thing is to create a favorable environment”, he reinforced.


The BC president stated that reducing inflation is one of the conditions for the resumption of growth. The index measured by the IPCA, and used by the BC, reached 8.99% in 12 months, according to July data.

“The worst thing for growth is runaway inflation,” he said, in response to deputies Elias Vaz (PSB-GO) and Alê Silva (PSL-MG), who expressed concern about the direction of the price hike. “Our public is looking forward to controlling inflation. People are suffering from this on their skin, at the table”, said Alê Silva.

Campos Neto said that the high inflation is due to several factors, such as the increase in consumption, the drop in production, the increase in the international price of commodities (such as meat and oil) and the appreciation of the dollar against the real.

Deputy Silvio Costa Filho (Republicanos-PE), also present at the debate, expressed concern about the impact of political disputes on the situation of the economy. “Brazil is permanently living in institutional crises,” he said.


Some lawmakers, such as Júlio Cesar and Paulo Ganime (Novo-RJ), debated with Campos Neto about bank fees and new digital tools. Deputy Tia Eron (Republicanos-BA) asked about the security of Pix, BC’s instant payment solution.

In recent weeks, there have been reports of crimes, including lightning kidnappings and scams, using this tool. Campos Neto recalled that the BC has already taken measures, such as establishing a limit of R$1,000 for transactions between individuals in the period from 8 pm to 6 am. He said, however, that the institution’s data do not indicate a wave of crimes with the use of Pix.

“When we look at the statistics associated with crimes with Pix, it was 0.001% in terms of incidence on transactions [financeiras]. This is quite low even compared to other emerging countries,” he said. Campos Neto also said that the crimes are more related to the economic crisis than to the instrument itself, and that the solution is to deepen the digitization of the economy, reducing the amount of money in circulation, including at branches and ATMs.