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Brazil cenbank emphasizes 'forward guidance' to spur growth, inflation - minutes

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Jamie McGeever Reuters
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Credit: REUTERS/ADRIANO MACHADO

Brazil's central bank has minimal room to cut interest rates, and 'forward guidance' keeping them low for a long time is the best way to stimulate growth and get inflation back up towards target, according to meeting minutes published on Tuesday.

BRASILIA, Sept 22 (Reuters) - Brazil's central bank has minimal room to cut interest rates, and 'forward guidance' keeping them low for a long time is the best way to stimulate growth and get inflation back up towards target, according to meeting minutes published on Tuesday.

The minutes of the Sept. 15-16 meeting of the rate-setting committee, known as Copom, showed that policymakers believe any further reduction in the Selic rate from its current record low 2.00% would be "small" and could risk destabilizing financial markets.

(Reporting by Jamie McGeever; Editing by Kevin Liffey)

((jamie.mcgeever@thomsonreuters.com; +55 (0)11 97189 3169; Reuters Messaging: jamie.mcgeever.reuters.com@reuters.net))

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