RIO DE JANEIRO, BRAZIL - He noted that only Brazil and Russia's current interest rates are above the neutral level, which supports the economy at full employment without pressuring or decelerating inflation.
A higher than neutral level is necessary to cool inflationary pressures and bring prices closer to Central Bank targets, Campos Neto said.
The Brazilian Central Bank has raised the SELIC to 10.75% from a record low of 2% in March last year, and indicated further adjustments to curb inflation that hit 10.4% in the 12 months through January.
Despite rising borrowing costs, Campos Neto said he . . .