BRASILIA, Nov 27 (Reuters) - A tighter budget spending policy should help bring down inflation towards the mid-point of the official target range, Brazilian central bank chief Alexandre Tombini said on Thursday.
Brazil’s government targets inflation at 4.5 percent, with a tolerance margin of 2 percentage points.
Tombini also said current central bank intervention in the foreign exchange market does not raise risks to the economy, adding that currency swaps sold by the bank should be rolled over in the future if there is market demand.
He spoke at the presentation of President Dilma Rousseff’s new economic team for her second term starting Jan 1. (Reporting by Luciana Otoni Editing by W Simon)