Brazil’s central bank has room to continue lowering interest rates as inflation is well-behaved even if still a bit above the target, Governor Roberto Campos Neto said during an interview with Bloomberg Television.
Monetary policy remains so restrictive in Brazil “because as inflation goes lower, real rates go higher,” Campos Neto said Tuesday, referring to the difference between nominal rates and inflation. “So we have space to lower rates and still be in the restrictive camp.”
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