Brazil's Central Bank Governor, Alexandre Tombini Reports on Macroeconomic Performance and Outlook Moving Forward
Global Economy is getting better, not worse; a net positive for emerging markets and countries like Brazil
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Point Roberts, WA, New York, NY - September 25, 2013 (www.investorideas.com newswire) Investorideas.com, a global news source featuring investing ideas and news in leading sectors, reports on the Monday, September 23rd conference call with Brazilís Central Bank Governor, Alexandre Tombini. Governor Tombini gave insight into Brazilís recent macroeconomic performance and Brazilís economic outlook moving forward.
In discussing the overall global economy and outlook Governor Tombini says the global picture is getting better, not worse and going forward should be a net positive for emerging markets and countries like Brazil.
He also makes a point that we are currently in a transition period globally of very accommodative policies, to more normal monetary policies.
He noted that Brazil has a very clear strategy of reducing risk through exchange rate operations and polices that cope with high volatility.
Brazil's economy grew in the first half of the year seeing recovery in investment on the demand side and manufacturing from the supply dimension of economic activity. The growth projection as released in June stood at 2.7 percent, with new numbers to be released in September.
Addressing inflation he said Brazil has made progress following a very intense process in the second half of last year and the initial months of 2013, with inflation coming down over the past three months. Monetary policy changed at the beginning of the year, commencing with a change in communication, followed by tightening of the policy rate in April.
He closed stating going forward that monetary policy has to remain vigilant to contain inflationary pressure.
The call was hosted by the Secretariat for Social Communication (SECOM) of the Federative Republic of Brazil.
Following his commentary a Q&A was opened up to the media.
Dan Horch with MNI.asked , "Governor Tombini, despite the recent monetary policy tightening, inflation expectations for next year as measured by the Central Bank's focus survey have been worsening. How does the Central Bank intend to reverse this deterioration in inflation expectation for 2014?"
Governor Tombini answered, "Well, we have been very clear about what we are doing here as far as monetary policy is concerned. I think we have covered some ground in bringing inflation down. This has been reflected in current trends of inflation. We have had a sort of receding of inflation expectation for this year. Into next year, you are right; the last numbers we have disclosed this morning show an increase in inflation expectation for 2014. My view is that, as we continue to make progress in bringing the 12-month inflation down, which has been the case the last couple of months, it will be the case this month, this better inflation trends will militate in the direction of making people more comfortable with what we have done as far as the fight against inflation is concerned, and we will see important repercussions on inflation expectations."
About SECOM: The Secretariat for Social Communication (SECOM) of the Presidency of the Federative Republic of Brazil is responsible for coordinating the public relations activities for the government of Brazil. For more information on the Federative Republic of Brazil, please visit www.brasil.gov.br. The official social media accounts for the Brazilian State are on Facebook and Twitter at http://www.facebook.com/BrazilGovNews/ and twitter.com/BrazilGovNews.
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