Dow Jones/Fox Business, 04/03/2012
Brazil became one of the BRIC emerging giants because of the decision to take inflation-targeting seriously, according to the brain behind the acronym, Jim O’Neill.
“I hope the government allows the central bank to remain independent, because if it didn’t, the main reason why I thought about including the ‘B’ in BRIC would disappear,” said O’Neill, president of Goldman Sachs Asset Management, at an event here Tuesday. The acronym refers to Brazil, Russia, India and China.
Although not strictly independent, the Brazilian Central Bank does have operational autonomy, and has gained credibility in recent years for its perseverance in combating inflation, which was brought down to single digits after years of hyperinflation.