Meanwhile, the central bank has been saying the "de-anchoring of expectations" inspires concern, preventing it signaling when rate cuts could start, a stance the bank’s economic policy director stressed in another interview on Thursday. In mid-April, Campos Neto had advised the government against boosting inflation targets, despite noting it was not a matter for the monetary authority to decide. (Reporting by Carolina Pulice; Editing by David Gregorio)
BRASILIA, May 11 (Reuters) - The debate over Brazil's
inflation targets is a valid one, central bank governor Roberto
Campos Neto said in an interview with local news website Faria
Lima Journal on Thursday.
"The central bank is not above criticism and the inflation
targets debate is valid," he was quoted saying.
In the minutes of its latest policy decision, the central
bank had stressed that inflation expectations remained higher
than official targets, "partially related to the questioning
about a possible change in future inflation targets."
In the interview, Campos Neto said bringing inflation
expectations towards official targets in longer terms "is one of
our main challenges."
Leftist President Luiz Inacio Lula da Silva has constantly
criticized current inflation goals, seen as too low, and the
benchmark interest rate, which the central bank has kept steady
at a cycle-high of 13.75% for its last six policy decisions.
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