Brazil central bank can keep cutting rates

Pragmatic view: Campos Neto speaking at an event in New York City. According to Brazil’s central bank, the country runs the risk of losing credibility if the government changes its current financial targets. — Reuters

SAO PAULO: The Brazilian central bank has room to continue the process of lowering interest rates as inflation is well-behaved, even if it is still a bit above the target, says governor Roberto Campos Neto.

“Rates are so restrictive in Brazil that we can continue the process of lowering rates because, as inflation goes lower, real rates go higher. So we have space to lower rates and still be in a restrictive camp,” said Campos Neto.