Rio, November 15, 2002 (Agencia Brasil - ABr) – The deputy director for the Western hemisphere at the International Monetary Fund (FMI), Lorenzo Perez, presently in Brazil as part of an IMF mission, says that the inflation spike does not cause concern and can be resolved with good policy. He blamed it on an exchange rate bubble.

Perez, and the head of the mission, Jorge Marquez Ruarte, will meet with the president of the Central Bank, Armínio Fraga, and the directors of economic policy, Ilan Goldfajn, and monetary policy, Luiz Fernando Figueiredo, to discuss fiscal and monetary policy, and the exchange rate.

Perez refused to comment on possible changes in the IMF-Brazil agreement signed with the present administration. Next week the mission will meet with the government-elect's transition team. (AB)