UPDATE 1-Global markets cheer Fed decision -Brazil central banker
BRASILIA, Sept 18 (Reuters) - Global financial markets are reacting very favorably to the U.S. Federal Reserve's decision not to cut monetary stimulus, but Brazilian authorities are standing by to reduce volatility, said central bank chief Alexandre Tombini.
The U.S. central bank decided on Wednesday to continue buying $85 billion in bonds a month for now, expressing concerns that a sharp rise in borrowing costs recently could weigh on the economy.
"Markets are reacting very favorably, currencies are strengthening against the U.S. dollar," Tombini told lawmakers during a congressional hearing. "The U.S. economy is in the process of recovery and there are expectations for the world economy to grow more next year than this year."
Brazil's real jumped more than 3 percent to 2.1920 per dollar.
Tombini added that pessimism about the Brazilian economy is not warranted according to recent data, which show local industry gradually recovering.