Brazilian Central Bank President Alexandre Tombini said on Tuesday that his country’s inflation rate will be lower and the economic growth higher for 2012 than this year.
In the first 11 months of this year, Brazil accumulated an inflation rate of 5.97 percent. The inflation target set for both this year and next year is 4.5 percent with a two percentage point tolerance, which means the inflation rate cannot exceed 6.5 percent.
Tombini said though his country is not immune to the world economic crisis, it still has some room to maneuver.
In the first three quarters of this year, Brazil registered a 3.2 percent economic growth rate and the government believes the economic growth rate for the whole year will stand at 3.2 percent.
However, financial market economists in Brazil say the country’s economic growth rate for this year will be below 3 percent.
Commenting on the state of the U.S. and European economies, Tombini said that the United States has experienced a rise in consumption but it is based on a reduction in savings, rather than the growth of domestic market.