The Central Bank (BC) has asked participants in the online betting and gaming market to report their projections for the Broad National Consumer Price Index (IPCA) for 2025 and 2026. The request is present in the Pre-Copom Questionnaire (QPC), released last Friday (18).
The QPC is a document sent to the market on the penultimate Friday before the Monetary Policy Committee (Copom) meetings. The purpose of the questionnaire is to collect information on projections and analyses of the economic scenario.
It also serves as a basis for the collegiate’s discussions. The next meeting will be on July 29th and 30th.
Participation of the online betting and gaming sector is new in the Central Bank’s QPC
Typically, in QPCs, the Central Bank requests projections for the IPCA and several of its components, which vary from edition to edition. This time, in addition to items typically included in the questionnaire, such as gasoline, health insurance, and food at home, the Central Bank decided to include online gaming and betting. This also includes projections for the IPCA for new cars.
The remainder of the QPC follows the questions from the last edition, including requests for projections for electricity tariff flags, GDP, fiscal situation, and external environment.
The Central Bank also maintained a request for the market to inform its projection of the net impact of the trade war on inflation in Brazil. The idea is to know whether this impact would be inflationary, disinflationary or neutral.
The QPC still requests projections for key labor market indicators, such as the unemployment rate and real usual income. However, the question about output gap estimates, which was included in the last edition of the questionnaire, is not included this time.
Monetary Policy Committee (Copom)
The Monetary Policy Committee (Copom) is the body of the Central Bank, formed by its President and directors, which sets, every 45 days, the basic interest rate for the economy, the Selic.
Meetings typically take place on two consecutive days, and the meeting schedule for a given year is published by June of the previous year.
The Copom meeting follows a process that seeks to provide the best possible basis for its decision. Copom members attend technical presentations by the Central Bank’s staff.
These address the evolution and outlook of the Brazilian and global economies, liquidity conditions, and market behavior. Thus, the Committee uses a broad range of information to inform its decisions.
