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Data confirms stabilization of the economy, says Central Bank

Economic growth

Numbers of the last periods open prospects for a resumption of growth after years of recession

Commenting on the latest indicators confirming the stabilization of the economy, Central Bank President Ilan Goldfajn said the data open prospects for a resumption of growth after a two-year recession. The analysis was presented at a closed event of Goldman Sachs Bank.

"In recent times, the increase in uncertainty perceived by economic agents has negatively impacted confidence levels. However, the available information suggests that the impact of the decline in confidence in the activity has so far been limited, remaining compatible with the basic scenario of the Central Bank, which is the stabilization and gradual recovery of the Brazilian economy, "Ilan said.

He also said that basic interest rates will continue to fall. However, the pace of falls should depend on factors such as the evolution of economic activity, the balance of risks and inflation expectations.

At the time, the BC president explained that the convergence of inflation to the 4.5% target center is compatible with the current policy of reducing the Selic rate. In July, the National Broad Consumer Price Index (IPCA), which measures official inflation, accumulated 3% in 12 months at the lowest level in history.

The National Monetary Council (CMN) sets 4.5% at the center of the inflation target for 2017 and 2018, with a margin of tolerance of 1.5 percentage points. The IPCA, therefore, can close the years between 3% and 6% without theCentral Bank's objective not being violated.

Source: Portal Brasil, with information from Agência Brasil.