Brazilian central bank president Tombini is attempting to sooth nerves with comments today but markets are pointing to slower growth.
Tombini says Brazil’s recovery is slower and risks are fluid but skewed to the downside. Still, he expects faster growth in the second half of the year. The forecast for 4.9% inflation at the end of 2013 (target is 4.5%) won’t prevent action, he said.
The break of recent support, if it’s confirmed at the close is another sign of sagging global growth.
Tombini adds that Brazil is prepared to step into the FX market to ensure functioning.
