BRASILIA/SAO PAULO (Reuters) -The director of international affairs of Brazil’s central bank, Paulo Picchetti, said on Wednesday that inflation expectations in Latin America’s largest economy have been consistently higher than the monetary authority’s target.
Speaking at an event in Washington, Picchetti said that consumer prices in Brazil have been decelerating recently, but stabilizing at levels above the 3% inflation goal.
Picchetti said that Brazil’s central bank chose to lead a data-dependent approach to monetary policy and will do “whatever it takes” for inflation to converge back down to target.
The central bank last month delivered a 25 basis-point increase that brought the benchmark interest rate Selic to 10.75%.
(Reporting by Bernardo Caram in Brasilia and Luana Maria Benedito in Sao Paulo)
