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Brazil's Outgoing Central Bank Chief Sees Strong Growth Ahead

Brazil's Outgoing Central Bank Chief Sees Strong Growth Ahead

  • ‘Expectations are now very high,’ Goldfajn tells Le Temps
  • He warns reforms must continue to keep inflation in check

Brazil’s outgoing central bank President Ilan Goldfajn told Swiss newspaper Le Temps that conditions remain in place for strong economic growth, while he warned against inflated expectations under the country’s new populist government.

“The expectations are now very high in Brazil,” Goldfajn said in an interview with the French-language newspaper ahead of an address at the International Center for Monetary and Banking Studies scheduled for Tuesday in Geneva.

Ilan Goldfajn

Photographer: Andre Coelho/Bloomberg

Goldfajn, who is to be replaced as central bank president by Roberto Campos Neto, said that to keep inflation in check Brazil must continue with economic reforms under the new government of Jair Bolsonaro.

“The idea is to continue the reforms and increase the flexibility of the economy,” he said. “If the new government comes to put the accounts in order, the economy will gain in productivity.”

Goldfajn said Brazil’s inflation is under control and can remain so in coming years, with interest rates at a low level to stimulate the economy. He expects economic growth of 2.5 percent in 2019.

Goldfajn said he expects to step down in March.