IMF praises "prudent" Brazilian monetary policy
The head of a visiting International Monetary Fund mission to Brazil praised the country's monetary policy as "prudent" on Thursday, saying he was satisfied with the Central Bank's recent actions.
The Central Bank has hiked interest rates two consecutive months in an attempt to prevent rising oil prices from pushing inflation above its targets. Last month's hike in the Selic interest rate by 50 basis points to 16.75 percent was higher than expected by economists.
"We had a very favorable impression of Brazil's economy, which is growing strongly."The IMF team will carry out the ninth review of Brazil's economy under a $40 billion loan deal. The loan expires early next year and includes fiscal goals that Brazil has easily met.
(From Reuters, November 05, 2004)
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