Emerging markets face a “definitive danger” from accelerating inflation and should resist the temptation to impose capital controls to stem currency gains, said Arminio Fraga , the head of Brazil’s stock exchange and a former central bank president.
Capital controls should be used as a transitory tool to curb foreign investment inflows and not to cover up problems in fiscal or monetary policy, said Arminio Fraga, former director of Brazil’s central bank.
Former president of Brazil’s central bank and chairman of BM&F Bovespa SA , Arminio Fraga , said the central bank should analyze inflationary pressures before making decisions on the basic interest rate.
As President Dilma Rousseff’s lead narrows in polls before October’s election, she and her top opponent are courting voters with spending promises that would undermine the fiscal discipline investors say is needed to restore confidence in the economy.
Brazil isn’t prepared for economic growth of 6 percent or 7 percent a year because of inflationary pressures and infrastructure “bottlenecks,” Arminio Fraga , former president of the central bank, told O Estado de S. Paulo.
Brazil’s economic situation may change “radically” and the central bank may have to resume interest-rate increases unless inflation slows further, former central bank President Arminio Fraga told Veja magazine.
Jorge Paulo Lemann lost his first job, as a financial columnist at Jornal do Brasil , after graduating from Harvard University in 1961. Then a brokerage he started almost failed during a Brazil stock rout.