Inflation Expectations in Brazil

BRASILIA/SAO PAULO (Reuters) – The director of international affairs of Brazil's central bank, Paulo Picchetti, highlighted on Wednesday that inflation expectations in Latin America's largest economy have consistently exceeded the monetary authority's target.

Speaking at an event in Washington, Picchetti noted that while consumer prices in Brazil have been decelerating recently, they are stabilizing at levels above the 3% inflation goal.

He mentioned that Brazil's central bank is committed to a data-dependent approach to monetary policy and will do "whatever it takes" to bring inflation back to target.

Last month, the central bank implemented a 25 basis-point increase, raising the benchmark interest rate, Selic, to 10.75%.