Tombini Reiterates Brazil to Act in Timely Way to Slow Inflation

Brazil’s central bank President Alexandre Tombini reiterated today that policy makers will do what’s needed in a timely way to ensure inflation slows in the second half of this year.

“The central bank is vigilant and will do what’s necessary in a timely fashion to make inflation decline in the second half and to ensure this trend will last in the coming years,” he told members of Congress in Brasilia, repeating language used last week in Rio de Janeiro.

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. Policy makers are scheduled to decide again on rates in a May 28-29 meeting.

Inflation in the world’s biggest emerging market after China is near the 6.5 percent upper limit of the central bank’s target range even after growth slowed for two straight years. President Dilma Rousseff’s administration is trying to rein in consumer prices without jeopardizing faster economic growth.

Swap rates on the January 2014 contract reversed earlier drops and rose as much as 2 basis points to 8.15 percent. The contract was unchanged at 8.13 percent at 4:16 p.m. local time.

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