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Campos Neto Says No Mechanical Relationship Between Fiscal Framework and Interest Rates

BRAZIL
  • BCB Governor Campos Neto comments on the wires, indicating that there is no mechanical relationship between the fiscal framework and interest rates.
  • Assessment of fiscal plan super positive
  • Says risk of dis-coordinated debt path ruled out
  • Banks are worried about credit slowdown
  • Banks don't see a credit crunch happening
  • Brazil credit growth in line with EM countries
  • Cenbank names to be sent to congress after China trip
  • Inflation targeting system is important
  • We don't gain flexibility by changing CPI goal (BBG)

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