Brazil Weighs Early Policy Review to Tolerate More Inflation
- Real tumbles on possible early change to inflation goal
- Campos Neto would favor higher inflation target, people say
Brazil's central bank headquarters in Brasilia
Photographer: Andressa Anholete/BloombergThis article is for subscribers only.
Brazil’s economic team is considering an early review of the country’s inflation targets in an attempt to defuse tensions between the central bank and President Luiz Inacio Lula da Silva, who has been publicly pushing for higher goals and lower interest rates, according to two government officials with knowledge of the matter.
Local assets tumbled on the report, with the real leading losses among emerging markets, as investors didn’t count on the possibility of an imminent change to inflation targets. The national monetary council, the government body responsible for setting them, traditionally holds a discussion about the subject in June, when it was expected to define a goal for 2026.