Luciana Magalhaes – The Wall Street Journal, 09/18/2012
Brazil’s central bank doesn’t rule out raising its baseline interest rate in 2013 if necessary, to keep inflation within its target range, a person close to the central bank said Tuesday.
“We have an inflation targeting policy. If it becomes necessary, the central bank will raise rates in 2013 to keep the inflation in the target,” said the person, who asked not to be named.
While Brazil’s central bank has most recently been cutting interest rates, many market players are betting that the central bank will have to raise rates in 2013 to tame inflation. But top finance ministry officials have sought to play down any need for rate hikes next year.