Alana Gandra
Reporter - Agência Brasil

Rio - The president of the Central Bank (BC), Henrique Meirelles, calling 2005 a year of adjustments, admitted that growth last year was below expectations. But, speaking to the American Chamber of Commerce in Rio de Janeiro, he said the prospects for 2006 were very good.

Even with sluggish performance in 2005, it was above 2004 and better than most emerging countries, Meirelles pointed out.

He said the Central Bank was doing its part by keeping the country's economy sound with low inflation that was being kept within strict limits. Meirelles emphasized that countries do not grow with high inflation. He called the inflation targets "consistent," and added that they were adequate for the country's growth targets. He pointed out that over the long term, with low inflation, the tendency is for economic expansion and falling interest rates.

Translation: Allen Bennett