Goiânia, 10/29/2003 (Agência Brasil - ABr) - The president of the Central Bank, Henrique Meirelles, says that there are signs that an economic upturn will occur during the remaining part of the second half of this year. He pointed out that making monetary policy more flexible, beginning back in July, with gradual reductions of the country's key interest rate (known as the Selic), along with an increase in the availability of credit and stronger real wages, will permit a progressive rise in consumption.

Meirelles said the difficulties the country faces today are the result of the effort made at the beginning of this year to reverse foreign account deficits which had been occurring for a decade. The country should run a surplus this year. "We are paying the price of a current account adjustment based on deflation. But the cost will be less than if we had tried to do this any other way," he declared. (AB)