April 15 (Reuters) - Brazil's central bank governor Roberto Campos Neto said on Monday that the "ideal" would be for the government not to tweak its fiscal targets, and that any changes in case of "detours" need to be well communicated.
Brazil's government in its budget guidelines bill set a fiscal target of zero primary deficit for 2025, postponing the path for debt stabilization initially planned when new fiscal rules were introduced last year.
The administration of leftist president Luiz Inacio Lula da Silva had initially suggested it would seek a primary surplus equivalent to 0.5% of GDP next year.
"Whenever you have a change in the government, that makes the fiscal anchor less transparent or less believable... So the cost of monetary policy becomes higher," Campos Neto said at an event hosted by the Council on Foreign Relations in New York.
"The ideal is not to change the targets," he added.
Rising global debt will be a major concern, highlighting that worldwide fiscal policy is becoming much less coordinated with monetary policy, Campos Neto said.
Asked about the proposal to use income from frozen Russian assets to pay for the reconstruction of Ukraine, he said, "the moral hazard that can be created by that far exceeds the benefits."
"People need to understand that the whole system is based on the trust that once you accumulate reserves and invest them abroad, you can get your money when you need to," he said.
"As a central banker who has reserves invested in different places, I worry that you can break this trust." (Reporting by Marcela Ayres; editing by Gabriel Araujo and Bill Berkrot)
