Brazil central bank flags concern over long-term inflation expectations drift

BRASILIA - Brazil's central bank monetary policy director Nilton David said on Tuesday the bank is troubled by inflation expectations drifting further from its 3% target - particularly for 2028, a horizon expected to be less sensitive to current shocks.

Speaking at an event hosted by Santander, David said the economy is no longer growing above potential, and policymakers will keep monetary policy in restrictive territory until they are confident inflation is converging to the goal.

(Reporting by Marcela Ayres; Editing by Gabriel Araujo)

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This story was originally published May 19, 2026 at 6:40 AM.