Reported 6 months ago
Brazil's central bank president, Roberto Campos Neto, and other bank officials expressed concerns about high inflation expectations in financial markets despite data showing moderation. There is alignment among bank officials on the issue following a split decision on rates last month. Campos Neto mentioned that time would work in favor of the central bank to dissipate market inflation expectations, which have been driven up by 'noises'. Private economists raised year-end projections for the Selic benchmark interest rate and inflation, with the central bank's official target at 3%. The central bank is monitoring international scenarios and the dichotomy between good inflation figures and poor inflation expectations in Brazil before signaling any future steps in monetary policy.
Source: YAHOO