Part I Responses to the Covid-19 Crisis and Maintenance of Financial Stability, 5 Central Bank Policy Responses to the Effects of COVID-19 on the Brazilian Economy »
Cristiano CozerFrom: International Monetary and Banking Law post COVID-19
Edited By: William Blair, Christos Gortsos, Chiara Zilioli
This chapter focuses on the response of the Banco Central do Brasil (BCB) following the impact of the COVID-19 pandemic on the Brazilian economy. Government restrictions on population mobility inflicted a severe exogenous shock on economic activity, with widespread and strong negative consequences for consumer demand and the supply of goods and services. The Chapter explains how the BCB reacted promptly to the pandemic's repercussions with a substantial package of policies, which encompassed both monetary measures intended to increase financial system liquidity and regulatory measures targeted at securing the credit channel's regular operation.