Brazil Inflation Needs to Slow Further, Arminio Fraga Tells Veja

Oct. 16 (Bloomberg) -- Brazil’s economic situation may change “radically” and the central bank may have to resume interest-rate increases unless inflation slows further, former central bank President Arminio Fraga told Veja magazine.

The central bank’s decision to cut the benchmark interest rate in August was “daring,” though the bank’s assessment was “logical and reasonable,” Fraga, who founded Brazilian fund manager Gavea Investimentos Ltda., told the Sao Paulo-based magazine.

He said the global economic situation is “scary,” according to Veja.

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To contact the reporter on this story: Josue Leonel in Sao Paulo at jleonel@bloomberg.net

To contact the editor responsible for this story: Laura Price at lprice3@bloomberg.net