UPDATE 1-Brazil committed to inflation targeting, official says

Fri Nov 1, 2013 8:09am EDT

SAO PAULO Nov 1 (Reuters) - The Brazilian central bank is committed to the current inflation-targeting system, one of its board members said on Friday, adding that the benefits of a vigilant monetary policy are evident.

"We reiterate our commitment to the system of inflation-targeting," Aldo Luis Mendes, the central bank's monetary policy director, said at an event in São Paulo. The bank has a 4.5 percent inflation target for this year and next, with a leeway of plus or minus two percentage points.

He also flagged the importance of a floating currency regime and policies to administer international reserves as important anchors of the bank's economic policy.

A recent program to provide the financial system with more supply of U.S. dollars on the spot and futures currency markets through auctions of swaps and similar financial instruments has been a "success," Mendes said.

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