Brazil’s central bank will do what’s necessary to ensure inflation starts slowing in the second half of this year, central bank President Alexandre Tombini said. Swap rates rose.
“The central bank is vigilant and will do what’s needed, in a timely way, to put inflation in a declining trend in the second half, and to ensure that that trend will continue next year,” Tombini said today at an event in Rio de Janeiro.
Brazil’s inflation is and will remain under control, he said. The international scenario remains complex, as Europe’s economy is still showing signs of fragility.
Policy makers in the world’s second-largest emerging market are working to slow inflation, which is near the 6.5 percent upper limit of the bank’s target range.
The central bank last month raised its benchmark rate for the first time since July 2011 amid signs that price increases are undermining Brazil’s economic recovery by curbing demand and investors’ confidence. Retail sales in March fell for the second straight month, as consumers reigned in supermarket purchases, the national statistics agency said this week.
Swap rates on the January 2015 contract erased an earlier drop and rose 3 basis points to 8.46 percent at 3:29 p.m. local time.
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