Brazil needs concrete progress on reform to anchor inflation: central bank chief

FILE PHOTO: Senior banking executive Roberto Campos Neto, nominee by Brazilian President Jair Bolsonaro to head the Brazil's Central Bank, participates a meeting at Economic Affairs Committee (CAE) of the Brazilian Federal Senate in Brasilia, Brazil February 26, 2019. REUTERS/Ueslei Marcelino

BRASILIA (Reuters) - Concrete progress on Brazil’s fiscal and economic reform agenda is crucial to a benign outlook for inflation, central bank President Roberto Campos Neto said on Thursday, adding that current inflation expectations are in line with targets.

Campos Neto said the economy’s large output gap is putting downward pressure on inflation and warned of risks from slowing global growth, according to a presentation at an investor event in Sao Paulo on the central bank’s website. He was speaking just after the government’s cornerstone pension reform bill cleared a key congressional hurdle.

Reporting by Jamie McGeever; Editing by Leslie Adler