Brazil central bank chief highlights ‘huge’ deanchoring of inflation expectations

BRASILIA (Reuters) – Brazil’s central bank chief Roberto Campos Neto highlighted a “huge” deanchoring of inflation expectations in the country, adding that it is “very important” to bring inflation back to target, and that policymakers are committed to doing so.

Speaking at an event hosted by the 20-20 Investment Association, he said tight labor market data indicates the need to closely monitor services inflation. He also reiterated that policymakers chose not to provide monetary guidance to allow time to assess the evolving scenario.