Gabriel Galípolo, the president of Brazil's Central Bank, addressed the company's future approach to interest rates during a recent conference, emphasizing a reserved and data-driven stance. He mentioned that the current benchmark interest rate stands at 15% per annum, and indicated that while the Central Bank aims to start a cycle of rate reductions in March, further reassurance is needed beforehand. His remarks highlight a cautious optimism as the Central Bank navigates economic volatility.

During his speech, Galípolo likened the Central Bank's operations to a "transatlantic ship" as opposed to a "jet ski," suggesting that significant and rapid changes in policy are unlikely. He stressed the importance of calibration in decision-making, stating that the Bank will remain reliant on forthcoming economic data before proceeding with any changes to monetary policy. His comments reflect an understanding of market expectations and an intention to manage them prudently.

Additionally, Galípolo dismissed interpretations that recent use of the terms "tranquility" and "parsimony" indicate a shift in the Bank's strategy. He reassured stakeholders that the Central Bank's strategy for response functions remains intact and unchanged. This steadfastness amid uncertainty underscores the Central Bank's commitment to careful economic management, suggesting that while the aim is to stimulate growth through lower interest rates, any moves will be measured and contingent on further developments in the financial landscape.