Brazil inflation expectations to improve over time, says central bank chief

BY Reuters | ECONOMIC | 05/27/24 01:02 PM EDT

BRASILIA, May 27 (Reuters) - Brazil's central bank chief Roberto Campos Neto said on Monday that policymakers believe inflation expectations should stabilize and improve over time, after recently citing concerns about them deviating from the official target.

Speaking at an event organized by business group Lide, he mentioned that the central bank sees a small correlation between services and price increases, but that the movement is "incipient" and still needs to be better understood. (Reporting by Marcela Ayres; Editing by Gabriel Araujo)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

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