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UPDATE 1-Brazil should keep same CPI target in '09- Mantega

Wed Mar 14, 2007 12:26pm EDT

(Adds background, 2006 inflation)

BRASILIA, March 14 (Reuters) - Brazilian Finance Minister Guido Mantega said on Wednesday the country should keep its target for inflation for 2009 at 4.5 percent, unchanged from the goal set for 2007 and 2008.

The National Monetary Council has already set the inflation target for 2007 and 2008, though it will only decide on the target for 2009 in the middle of the year. Some economists have called for a lower inflation target.

Mantega on Tuesday criticized the central bank for being too conservative, saying policy makers forced inflation below the 4.5 percent target last year by keeping interest rates high.

Brazil's benchmark IPCA inflation index rose just 3.14 percent in 2006, an eight-year low and well below the target.

Many politicians and business leaders say the central bank was overzealous in its battle against inflation and should have lowered interest rates faster to spur the economy, which grew just 2.9 percent last year.



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