Brazil’s Goldfajn Confronts Tough Balancing Act at Debut Meeting

Mario Sergio Lima – Bloomberg, 07/20/2016

When Ilan Goldfajn presides over his first policy meeting on Wednesday as Brazil’s central bank chief, he’ll have a daunting task: reviving an economy mired in its worst recession in more than a century while restoring the bank’s inflation-fighting bona fides.

Traders and analysts — who expect the central bank to keep interest rates unchanged at a 10-year high of 14.25 percent — will be paying close attention to the bank’s statement for a read on Goldfajn’s plan of action. To Goldman Sachs Group Inc.’s Alberto Ramos, Goldfajn must make clear his commitment to quash inflation, which has long plagued Latin America’s biggest economy.

“The most important contribution that the central bank can make to the economy is delivering low and stable inflation,” said Ramos, Goldman Sachs’s chief Latin America economist.

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