Brazil central bank flags concern over long-term inflation expectations drift

BRASILIA, May 19 (Reuters) – Brazil’s central bank monetary ​policy director ‌Nilton David said on Tuesday the bank is troubled ‌by ​inflation ⁠expectations drifting further ⁠from its 3% target – particularly for 2028, a ​horizon expected to be ⁠less sensitive ⁠to current ​shocks.

Speaking at an ​event hosted by Santander, ‌David said the economy is no longer ⁠growing above potential, and policymakers will keep ⁠monetary ‌policy in ⁠restrictive territory ​until ‌they are confident ​inflation ⁠is converging to the goal.

(Reporting by Marcela Ayres; Editing by Gabriel ​Araujo)