Brazil to Trim Inflation Goal as It Seeks Convergence With Peers
- Inflation target to fall to 3.5% by 2022, from 4.25% currently
- Policy makers unlikely to make changes to +/- 1.5 ppt range
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Brazil’s government is planning to reduce the inflation target it sets its central bank to 3.5% by 2022 from 4.25% now in an attempt to align its goal with those of other emerging market countries, according to three officials with knowledge of the matter.
Members of the economy ministry and the central bank are in agreement to cut the target by a further quarter-point in a decision to be made at the country’s monetary council meeting next week, said the people, who requested anonymity because the discussion isn’t public. Brazil currently targets inflation of 4.25% this year, 4% in 2020 and 3.75% in 2021. The tolerance range is plus or minus 1.5 percentage points and there’s no plan to change that, they added.