MNI BRIEF: Brazil Aims For Growth And Lower Inflation-Haddad

Brazil should aim for economic growth combined with falling inflation, Economy Minister Fernando Haddad told a press conference in Rome on Thursday in which he said that Q1’s 0.8% GDP growth was in line with government projections.

Saying that Brazil was already on target for growth with subdued increases in prices, Haddad reiterated the government’s forecast of 2.2%-2.5% growth this year, though he cautioned that this could be revised downwards depending on the impact of recent floods in the south of the country.

His comments came after recent government appointees to the Central Bank of Brazil’s monetary policy committee Copom voted to cut the official Selic rate by 50 basis points in May, in line with previous guidance but dissenting against Governor Roberto Campos Neto’s majority for a 25bp cut to 10.5%. (See MNI EM INTERVIEW: Copom To Hold At 10.50% - Ex-BCB's Kanczuk)