Brazilian central bank's new chief says ready to fight inflation

The new president of Brazil's central bank, Ilan Goldfajn, said on Monday that he will seek to fight inflation and focus on the the "macroeconomic tripod," namely fluctuating exchange rates, fiscal responsibility and controlled inflation.

In a ceremony at the central bank headquarters in Brazil, Goldfajn officially took up the post and said that the institution's main mission was to ensure stability by bringing inflation under control.

"It is important to highlight that the efficiency of our monetary policy will be greater, depending on the success of reforms and on the return of fiscal responsibility," he explained in a speech.

According to the president, Brazil needs to leave behind the "new economic model" promoted by suspended President Dilma Rousseff, which saw a larger role of the state in the economy and a rise in public expenditure.

"I feel there is almost a consensus to replace the effects of the new economic model with the good old macroeconomic tripod: fluctuating exchange rates, fiscal responsibility, and controlled inflation," said Goldfajn.

He noted that stable prices were crucial as "this is a public right achieved by our society over 20 years ago, after a period of inflation that nobody wants to see return."

"Low inflation reduces uncertainty, boosts the economy's growth capacity and makes society fairer," he said.

For 2016, financial analysts predict an inflation rate of 7.19 percent, well above the official 4.5 percent target set by the Brazilian government, even with its 2 percent tolerance rate. Enditem