Brazil’s central bank vows to control inflation

Joe Leahy – Financial Times, 9/30/2015

Brazil’s central bank is willing to do whatever is necessary to control inflation while the country grapples with the thorny issue of how to rebalance the nation’s public finances, a senior official has said.

Tony Volpon (pictured), head of international affairs at the central bank, said while tax increases to balance the budget could raise prices, monetary policy would be adapted to ensure that inflation eventually converges to the official target of 4.5 per cent. Annual inflation is currently running at 9.7 per cent.

“I would much rather that we have a sustainable fiscal situation even if that means higher inflationary pressures that we need to control at our end,” said Mr Volpon in an interview at the central bank’s headquarters in Brasília.

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