Brazil’s central bank chief is concerned with above-target inflation expectations for next year but cautioned against hurting growth prospects by raising interest rates too fast. Roberto Campos Neto said policy makers should be mindful that economic models in a post-pandemic world have limitations and may fail to accurately capture the lagged impact of monetary policy on prices. At the same time, they need to make sure inflation expectations don’t rise above target, which could lead to loss of credibility in the bank’s work and further fuel inflation. “The objective is to not make any of those mistakes,” he said in ... (full story)