Brazilian central bank President Alexandre Tombini said policy makers could adjust monetary policy as needed as they seek to reassure investors the government won’t refrain from raising interest rates to keep consumer prices tamed.
Politicians across eastern Europe including Poland, where interest rates fell to the lowest in almost two years today, are following the lead of other emerging-market governments by demanding looser monetary policy.
Brazil’s inflation is at a high level that requires attention, the central bank said in response to a report showing that consumer prices rose in January at the fastest pace in almost eight years. The real posted the biggest gain among major currencies.
Emerging-market stocks rose, adding to the benchmark index’s biggest weekly gain in almost two months, as industrial and technology companies’ profits beat estimates and hiring in the U.S. increased more than forecast.