Rio, April 5, 2004 (Agência Brasil) - The president of the Brazilian Central Bank (BC), Henrique Meirelles, said that the Brazilian economy will undergo profound changes this year. In his view, the country is on its way to sustained growth and is capable of achieving this year's 5.5% inflation target. According to him, in 2005 the government will continue to pursue the annual inflation target, 4.5%, set by the National Monetary Council (CMN).

While acknowledging that interest rates in Brazil are still high by international standards, Meirelles recalled that they are the lowest ever applied in Brazil. In the BC president's evaluation, they are compatible with current growth forecasts. "Interest rates are still high by international standards. Clearly, all Brazilians, including the BC, desire lower rates in the future. With stability and fiscal responsibility, we shall be able to have lower rates; that's what we're working for," he concluded.

Translator: David Silberstein