SAO PAULO Nov 1 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.