Brazil cenbank chief says new fiscal bill good sign for inflation

BRASILIA (Reuters) – Brazilian central bank chief Roberto Campos Neto said on Thursday, a day after the country’s lower house approved a new fiscal framework bill, that the move has had a postive impact on inflation forecasts and long-term interest rates.

Speaking to local television channel Globo News, Campos Neto did not say whether this could signal a possible cut in the country’s interest rate in coming months.

Brazil’s lower house passed the bill on Wednesday and sent it to the Senate, a major victory for the government of President Luiz Inacio Lula da Silva as it seeks to balance public accounts while taming debt growth.

Campos Nieto praised the work of the government and Finance Minister Fernando Haddad, as well as “how congress mobilized and voted quickly and so expressively on an issue such as the framework.”

Long-term interest rates are falling “a lot,” he said.

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