Brazil govt sets inflation target at 4.5%
The Brazilian government has set its inflation target at 4.5 per cent for 2011, choosing to keep it at the same level as last year.
Planning minister Paulo Bernardo announced the decision, saying it allows the country’s central bank more flexibility in creating monetary policy, which may interest Brazilian property investors.
The government and central bank do not envisage any pressures on inflation going forward.
"Inflation globally will accommodate (to lower levels), with no evidence of price upticks in the future. Despite all that, good policymaking practice calls for prudence," said a statement from the finance ministry, quoted by Reuters.
Monetary policymakers have cut interest rates in four straight monthly meetings this year, slashing the so-called Selic rate to 9.25 per cent in an effort to shore up the country’s economy against the global economic recession.
Meanwhile, Samantha Gore, sales and marketing director at Brazil real estate specialist uv10.com, recently said that property investors have been reassured by positive economic results in the last few months.
