Paulo Picchetti stated that the “last kilometer” is missing, in reference to the end of the monetary tightening cycle

The director of International Affairs and Corporate Risk Management at the BC (Central Bank), Paulo Picchetti, said that the world is experiencing disinflation, but that it is necessary to go through the “last kilometer” in adjusting monetary policy. He stated that the “moment is for success”but the countries did not arrive “there still”, in reference to the end of the interest rate tightening cycle.

He gave an interview to journalists this Thursday (29.Feb.2024) in São Paulo, during the G20 event. According to the director, appointed by President Luiz Inácio Lula da Silva (PT) in December 2023, inflation increased worldwide after the health crisis, including in Brazil.

“There is a fairly consensual diagnosis that we faced this difficult post-pandemic period. Initially, people [estavam] thinking that they were only fighting supply shocks, but over time everyone came to understand that the transfer programs that guaranteed the subsistence of people and companies also created an increase in demand”these.

The director stated that there was an increase in the interest rate to combat the increase in prices. He assesses that coordination between countries in monetary policy resulted in a “moment of success”.

“The whole world is seeing disinflation, obviously it has different degrees among different economies, but the direction is common to all countries”he declared. “At the same time, we have the diagnosis that you are not there yet. […] The last kilometer of the race is left”he completed.


Picchetti stated that the world came out of a pandemic, which was a “unique event to coordinate the economic cycle in all countries. We have experienced several crises over the years, but this affected countries and regions differently”. According to him, the G20 is important “much bigger” for the coordination of “answers to common problems that appeared”.

One of the goals is to leave the world fairer and the planet more sustainable. He stated that all countries are concerned about resuming growth under equal conditions. He said that the problem was initially presented by Brazil, but the idea was “supported by all G20 participants”.

There are several initiatives that are important, both from a national point of view and between countries. From a national point of view, […] issues such as financial inclusion are being discussed a lot: taking people who are on the margins of the financial system and being able to incorporate them”he declared.

According to Picchetti, this work is done not only in quantity, but also in quality. Access to the credit market is a form of growth trajectory.

“Brazil is being seen as an example for advanced and developing countries, like Pix, which is a huge success story”, these. “[O sistema de pagamentos instantâneos] Increases people’s access to the financial market, credit conditions and allows businesses to appear where it was not possible”, he added.

The director declared that there is also admiration for technological issues in Brazil, such as the study for the creation of Real Digital, or Drex – Brazil’s official currency in virtual form. According to Picchetti, there is interest “grande” of all non-G20.


The BC director said that there is an international effort to establish within the G20 – with support from multilateral banks – the negotiation of less favored debts. The common framework unifies the renegotiation of financial issues.

“These are not simply momentary liquidity crises in the balance of payments. It is structural crises in these countries that prevent them from having access to credit conditions that allow them to evolve and overcome difficulties”declared Pickets.


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