Brazil Ready to Gradually Raise Interest Rates if Needed, Says Campos Neto

The head of Brazil's Central Bank, Roberto Campos Neto, stated that the country's monetary policy may involve a gradual increase in interest rates if necessary to maintain economic stability. He emphasized the importance of flexibility in managing monetary policy, especially amid uncertainties in global markets.

Campos Neto noted that if required, the bank will act decisively to keep inflation under control. Nevertheless, he also pointed out that the current policy of lowering rates should remain a priority to encourage investments and support economic growth.

In his speech at an economic forum, he highlighted the need to balance stimulating economic activity and managing inflation levels. Brazil, like many other countries, is facing challenges arising from global economic factors, such as increased currency volatility and the economic impacts of geopolitical conflicts.

Experts believe that a gradual rise in rates may become necessary if the economic situation in the country deteriorates, but Campos Neto expressed confidence in the resilience of the Brazilian economy under current conditions.

Keeping annual inflation within the target range remains one of the Central Bank's primary objectives, and its actions will be directed toward achieving this goal, despite potential negative impacts on growth.

Thus, Brazil remains in a state of monitoring the economic situation and is ready to take actions to ensure financial stability, which is an important signal for both local and foreign investors.

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