Clipping of news on Brazilian Culture, Law and Citizenship
19/07/2012
This article was translated by an automatic translation system, and was therefore not reviewed by people.
SAO PAULO - The Monetary Policy Committee (Monetary Policy Committee) of the Central Bank in its last minutes of the meeting, released on Thursday (19), maintained its projection of no change in gasoline prices this year. In other words, the Committee continues projecting no change in fuel in 2012 as had been predicted in the May meeting.
The projection for stability in the price of cooking gas in 2012 was also kept repeating the estimate of the previous meeting, ranging from 0%.
With respect to telephone tariffs designed the percentage was reduced from 1.5% to -1.0%. For electricity rates increased projection of 1.3% to 1.4%.
Administered prices
As with the fixed rates, there were changes in the projection for the whole adjustment of administered prices for the cumulative 2012, reducing from 4.0% to 3.6%.
The forecast increases the set of prices administered by contracts and monitored for cumulative 2013, was maintained at 4.5%.
The projection considers, among other factors, seasonal components, exchange rate, inflation of free prices and inflation measured by the IGP (General Price Index).
Copom
The Monetary Policy Committee was created in June 1996, aiming to establish guidelines for monetary policy and setting the basic interest rate. By the end of 2005, meetings of the college took place with a monthly frequency, but since 2006, began to occur approximately every 45 days, a total of eight meetings a year.
The model adopted in Brazil is similar to the Federal Reserve, the U.S. central bank, which has the FOMC (Federal Open Market Committee) the centralization of monetary policy decisions, bringing more transparency to the decision making process.
According to the Central Bank, the Monetary Policy Committee's objectives are "to implement monetary policy, set the Selic rate target and its potential bias and to analyze the Inflation Report." Remember that the interest rate fixed at the meeting of the college is the target for the Selic, the period which runs until the next committee meeting.
Source: News Agency
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This article was translated by an automatic translation system, and was therefore not reviewed by people.