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Central banks adjust monetary policy in response to inflation and labor market data, with a 0,50 pp cut and impact on international stock exchanges and commodity markets.
The dissemination of data from inflation in Brazil and the United States precede the meetings of central banks, leaving the monetary authorities' agenda hectic. Projections indicate that the Broad Consumer Price Index (IPCA) should register high, but still remain within the target of inflation. The president of the Brazilian Central Bank warned of uncertainties in the environment and left the message that the BC may review the pace of monetary easing, which keeps market expectations on alert.
While the Consumer Price Index (CPI) in the United States is forecast to be stable, with high prices registering 3,1% per year, American inflation has shown signs of slowing down. However, investors lost enthusiasm after the release of data on the labor market, which could keep interest rates high for longer. International stock exchanges eagerly await the meetings of the monetary authorities, keeping the market in constant expectation and movement.
Inflation and its consequences on the economy
Inflation is one of the main topics of discussion these days, especially with rising prices and rising costs of living affecting the population. You central banks have taken several monetary decisions to try to control inflation and maintain economic stability.
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The importance of inflation data
Analysis of the Broad Consumer Price Index (IPCA) is essential to understand the inflation target and direct the monetary policy. Recently, the monetary easing promoted by the 0,50 pp cut in the rate Selic it impacted the Consumer Price Index (CPI) and raised concerns for the Federal Reserve.
The impact of inflation on markets
High inflation has generated uncertainty in the markets and affected international stock exchanges, including the stock market. commodities, where the price of barrel has been affected. Furthermore, inflation has had repercussions on the labor market, with companies adjusting salaries to keep up with rising prices. It is a challenge for central banks to find the balance between stimulating the economy and containing inflation.
Source: moneytimes
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