Brazil's cenbank chief signals he may step down -report

BRASILIA, March 16 (Reuters) - Brazilian central bank chief Alexandre Tombini has signaled he may step down in a possible cabinet reshuffle that points to a shift in economic policy, Valor Economico newspaper reported on Wednesday.

Tombini is tired after five years in the post and has signaled he may be on his way out if former president Luiz Inacio Lula da Silva joins the cabinet, Valor said without citing sources.

The central bank declined to comment on the story through its press office.

President Dilma Rousseff has invited Lula, her political mentor, to join her cabinet as a way to defuse a growing political crisis that threatens to unseat her.

Lula and his Workers’ Party have publicly called for a shift away from austerity and towards greater public spending to jump start an economy mired in its worst recession in decades.

The Workers’ Party has called for the central bank to cut Brazil’s interest rates, which are amongst the highest in the world, and to use international reserves to bolster investment.

The Brazilian real weakened 2 percent against the US dollar in part because of the news Tombini could resign. (Reporting by Alonso Soto; Editing by Daniel Flynn)