Brazil's Central Bank Optimistic Control Inflation
The decline "substantially" on Brazil's inflation estimates indicate monetary policy began to succeed, said central bank President Alexandre Tombini on last Wednesday, showed optimism in the advancement of policy makers to fight high prices. In a speech before businessmen in Sao Paulo, Tombini reiterating that the bank would remain vigilant in lowering the inflation rate to 4.5% targeted per the end of 2016, and guarantee stability in the next year.
Currently, the annual inflation rate of almost 9%.
"The estimate for Repairs after 2015 shows the success of monetary policy," said Tombini, without offending the banking standard message that progress in the fight against inflation rate is still not enough. After a rise in benchmark Selic 275 points since last October, the pressure increased to policymakers of the central bank to loosen the tightening and avoid further harm to the economy that led to its worst recession in the last 25 years.
The Central Bank was reinforcing his statement, with hinting will still raise interest rates some time to push inflation to a level to be achieved. Some stockbrokers are starting to bet that the bank may raise the possibility of more 100 points to 14.75% this year.
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