March 27, 2013 / 4:06 PM / 5 years ago

Brazil Rousseff says won't fight inflation with low-growth policy

March 27 (Reuters) - Brazil’s President Dilma Rousseff on Wednesday said she will not support policies that attempt to curb inflation by lowering economic growth.

“I don’t agree to policies to fight inflation that look into reducing economic growth,” Rousseff said in comments to reporters in South Africa, where she is attending a meeting of BRICS countries, broadcast by Brazilian government TV.

“Last year we had low economic growth, but inflation rose because we had a supply shock,” she added, repeating one of the arguments recently used by the central bank to justify keeping Brazil’s base Selic rate at an all-time low of 7.25 percent even as inflation neared the ceiling of a government target.

“There is nothing we can do internally apart from expanding our production to contain an increase in commodities prices caused by a decline in the U.S. (grain) harvest,” Rousseff said.

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