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Brazil debt stabilization hinges on monetary policy, says Mello

BY Reuters | ECONOMIC | 08:02 AM EST

BRASILIA, Feb 6 (Reuters) - Brazil's economic policy chief Guilherme Mello said on Friday that ?stabilizing the country's gross debt-to-gross ?domestic product ratio depends ?on monetary policy decisions, ?among other ?factors.

The remarks come as ?Finance Minister ?Fernando Haddad revealed he had recommended Mello to ?President ?Luiz ?Inacio Lula da Silva for a vacancy on the ?central bank's interest rate-setting board.

Mello argued at a press conference that fiscal policy last year ?did ?not act as a stimulus to ?activity, adding that this helped inflation end the year within the central bank's 1.5% to 4.5% target range - ?an outcome markets had not initially expected. (Reporting by Marcela Ayres; ?Editing by Gabriel Araujo)

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