President Dilma Rousseff reiterated she wouldn’t be influenced by The Economist magazine’s call for her to oust Finance Minister Guido Mantega after a growth report that fell short of government forecasts.
Brazil's central bank kept its key interest rate unchanged at 7.25% on Wednesday, ending a series of cuts since last year, as the world's sixth largest economy tries to contain inflation.
Brazil's annual inflation remained relatively stable in August, and was broadly in line with economists' forecast, data released by statistical office IBGE. The consumer price index increased 5.24% on an annual basis in August, just ahead of the 5.2% recorded in July.
Consumer prices in Brazil rose faster than expected in the month to mid-July on higher food costs, suggesting the central bank may have less room than previously believed to cut interest rates much further.
Stimulus measures enacted by policymakers in recent months should soon lead to a pickup in growth, breathing some life into Brazil after three straight quarters of stagnation, said central bank president Alexandre Tombini. However he warned about two years of slow global growth and markets volatility.