President of Central Bank is optimistic about future

Speaking to the Economic Affairs Commission in the Senate yesterday,
the president of the Central Bank, Alexandre Tombini, declared that the
Brazilian economy will improve next year. The optimistic message from
Tombini was that inflation would be less and growth more.

According to Tombini, inflation reduction is a process and the process
is underway. He cited lower interest rates (reduction of the Selic –
“taxa básica de juros,” which rose 1.75 percentage points between the
beginning of the year and August. And then, beginning in August, was
reduced twice, each time by 0.5 percentage points).

Tombini also cited restrictions on credit (“medidas macroprudenciais”)
that the government implanted while keeping a focus on reducing risks to
the financial system.

According to Tombini, the strong fiscal situation in Brazil has made it
possible for the country to confront a difficult economic situation
abroad. He said the country had a liquidity cushion in dollars and in
its own currency giving Brazil capability to withstand the international
crisis.