BRASILIA Aug 11 Brazilian opposition candidate
Aecio Neves said on Monday that if elected president he would
adopt policies aimed at bringing the inflation rate back to the
center of an official target range of 4.5 percent by the end of
the four-year presidency.
President Dilma Rousseff's management of the economy has
come under heavy criticism ahead of the election on Oct. 5, but
while leading opinion polls show Neves narrowing the gap they
still point toward a victory for the incumbent.
Neves said in an interview with GloboNews TV that he would
do what is necessary to keep prices in check. The centrist
senator also said that he would also seek to lower the target
range for inflation.
"We will reach the end of our mandate with inflation at the
center of the target and from there we will reduce the
excessively wide tolerance band to have a lower target center in
the future," Neves said.
The central bank targets inflation at 4.5 percent, with a
tolerance margin of 2 percentage points, but inflation has
remained well above the mid-point during Rousseff's time in
Consumer prices barely rose in July, but 12-month inflation
stayed at 6.5 percent - the top of the target range.
Neves has criticized what he calls wasteful government
spending and price-control policies that have kept electricity
and fuel prices artificially low in recent years. The need to
raise those administered prices in the future has pushed up
inflation expectations in Brazil.
Rousseff's allies said that Neves would cut spending on
social programs that helped millions get out of poverty to ease
inflation. Neves has denied that he will get rid of those
programs which provide affordable housing and subsidies for the
(Reporting by Alonso Soto; Editing by Simon Cameron-Moore)