Brazil's Campos Neto says inflation expectations still high

Brazil's central bank Governor Roberto Campos Neto said on Monday that inflation expectations in the country remain high, dubbing long term forecasts stuck around 4% "a problem".

Campos Neto told a seminar hosted by newspaper Folha de S.Paulo that even though headline inflation has been slowing down, the core index remains "high" and "well above target".

Policymakers have mentioned de-anchored inflation expectations as one of the reasons for high interest rates in the South American nation, where the benchmark rate currently stands at a cycle high of 13.75%.