Brazil's Guedes says 'inflation beast is out of the box'



BRASILIA, Jan 21 (Reuters) - Brazilian Economy Minister Paulo Guedes said on Friday "the inflation beast is out of the box" and will be a problem for the Western world but stressed Brazil was moving faster to battle it with aggressive monetary tightening.

Addressing an online seminar on Friday hosted by the Davos World Economic Forum, Guedes said Brazil ended 2021 with a small primary surplus and that the country has fiscal and monetary space to react if economic conditions deteriorate.

"My fear is that the beast is out of the box. I don't think inflation will be transitory at all...And I think inflation will be a problem, a real problem, very soon for the Western world," Guedes said.
Reporting by Marcela Ayres Editing by Mark Heinrich

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.