Campos Neto Remains Cautious of Inflation Risk

Summary of comments from Brazil central bank President Campos Neto at a Bloomberg event in Sao Paulo (via BBG):

• Says world has miscalculated inflation persistence
• Need to be cautious about inflation, says we're not out of the woods in Brazil yet
• Will react if inflation convergence is not achieved
• Brazil central bank sees slowdown in growth next year on factors including lower commodity costs, effects from monetary tightening. Neto says commodities probably hit inflection point
• Says less uncertainty allows government to spend more; market reaction shows importance of fiscal commitment
• Subsidized credit has impact on neutral rate
• Volatile inflation may lead to neutral rate repricing
• Important to say we will persist, do whatever it takes