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Ex-Central Bankers Point To Sustained Inflation Pressures

BRAZIL
  • (Bloomberg)Three former Brazilian central bank chiefs painted a sobering picture of Latin America's largest economy, threatened by rapidly rising prices, persistent budget concerns and a short-lived post-pandemic recovery.
  • They do not expect inflation, running at an annual pace of more than 10%, to return to target any time before 2023, or perhaps even 2024.
  • Arminio Fraga, Ilan Goldfajn and Gustavo Loyola, speaking at Bloomberg's Market Espresso on Friday, agreed that growing fiscal worries ahead of next year's presidential election, coupled with a myriad of supply shocks and rising internal demand for services, will all but make it impossible for policy makers to bring inflation to next year's 3.5% target. (BBG)

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