LONDON--Economic growth should accelerate in Brazil in the second half of 2012, the country's central bank chief said Friday.
In a speech in London, Central Bank of Brazil governor Alexandre Tombini said new jobs, rising wages and sustainable credit growth should drive domestic demand for goods and services.
A weaker currency should help exports, he added. "Growth in Brazil should pick up in the second half of 2012," Mr. Tombini said at an event organized by TheCityUK, which represents financial services firms.
Brazil's central bank has been cutting its benchmark interest rate since August 2011 in response to flagging growth. The rate has fallen from 12.5% to the present 8.0%.
Brazil's economy expanded by only 2.7% in 2011, but Mr. Tombini said market expectations point to growth of 4% or so a quarter on an annualized basis by the final three months of the year and into 2013.
The annual rate of inflation in Brazil slowed in June, to 4.92% from 4.99% a month earlier, aided by a tax cut on new car sales.
Mr. Tombini said he expects consumer price inflation to keep slowing towards its 4.5% target, although conceded its path to target may face temporary disruptions.
"Inflation looks good in terms of its prospects for the next 12 to 18 months," he said. The central bank chief added Brazil needs to invest in infrastructure and boost productivity.
nasdaq.com
In a speech in London, Central Bank of Brazil governor Alexandre Tombini said new jobs, rising wages and sustainable credit growth should drive domestic demand for goods and services.
A weaker currency should help exports, he added. "Growth in Brazil should pick up in the second half of 2012," Mr. Tombini said at an event organized by TheCityUK, which represents financial services firms.
Brazil's central bank has been cutting its benchmark interest rate since August 2011 in response to flagging growth. The rate has fallen from 12.5% to the present 8.0%.
Brazil's economy expanded by only 2.7% in 2011, but Mr. Tombini said market expectations point to growth of 4% or so a quarter on an annualized basis by the final three months of the year and into 2013.
The annual rate of inflation in Brazil slowed in June, to 4.92% from 4.99% a month earlier, aided by a tax cut on new car sales.
Mr. Tombini said he expects consumer price inflation to keep slowing towards its 4.5% target, although conceded its path to target may face temporary disruptions.
"Inflation looks good in terms of its prospects for the next 12 to 18 months," he said. The central bank chief added Brazil needs to invest in infrastructure and boost productivity.
nasdaq.com
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