Monetary policy is one of the fundamental tools for a country's economic stability. In Brazil, the Copom sets interest rates in order to balance growth and inflation. Copom's decisions are not isolated, but rather influenced by global events, such as changes in interest rates in the United States.
Impact of interest rates in the United States
The United States is one of the largest economies in the world and its monetary policies have global repercussions. When the Federal Reserve, the central bank of the United States, decides to change interest rates, this can significantly affect the international financial markets.
Rising interest rates in the US tend to attract foreign investors, who are seeking higher returns on their investments. This can lead to capital outflows from emerging markets, such as Brazil, in search of more profitable assets in the US.
Inflationary pressures and economic growth
One of Copom's concerns is controlling inflation. Rising interest rates in the United States could trigger inflationary pressures in Brazil, as the cost of credit increases and the prices of imported goods rise.
To contain inflation, Copom may choose to increase its own interest rates, making credit more expensive and discouraging consumption. However, this move could also harm economic growth, since the increase in fees may slow down investments and consumption by Brazilian companies and families.
Final considerations
Given these complex interactions between domestic and international monetary policies, the Copom faces the challenge of making decisions that promote Brazil's economic stability. Although the United States considers only one of many interest rates, its influence on the global market cannot be underestimated.
So, next week, when Copom meets to deliberate on Brazilian monetary policy, it will certainly have in mind the impact of recent changes in US interest rates.
Image: Reproduction/Internet
