Central Banks

Brazil Will Gradually Lift Interest Rate If Needed, Campos Neto Says

  • Central bank says it’s data-dependent ahead of Sept. meeting
  • President Lula said the bank needs to give an “explanation”

Roberto Campos Neto

Photographer: Ton Molina/Bloomberg
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Brazil’s possible cycle of monetary tightening would be gradual, central bank chief Roberto Campos Neto said on Friday as he sought to temper investor bets on large interest rate hikes starting next month.

“If and when there is a cycle of interest rate increases, it will be gradual,” Campos Neto said at an event organized by XP Investimentos. Still, the bank will remain data dependent and refrain from giving guidance on its next steps, he said. “The moment requires flexibility.”