WASHINGTON (Reuters) - The recent weakening of Brazil's real against the dollar has not spurred inflation, Brazilian central bank governor Roberto Campos Neto said on Friday, adding that there was room for a cut in the country's benchmark Selic interest rate.
At a news conference in Washington, where he attended events at the International Monetary Fund (IMF) annual meetings, Campos Neto noted Brazil has a floating exchange rate and that the bank only intervenes in currency markets when there is a liquidity gap in the market.
Brazil's central bank cut its benchmark interest rate to a new record low of 5.50% last month and suggested more rate cuts are in the pipeline, highlighting an increasingly uncertain global outlook and tame domestic inflation.
While Brazil's real is trading at around 4 per greenback
Former trader Campos Neto also said on Friday that Brazil's growing credibility has helped limit the pass-through from the real's depreciation, adding that Brazil's risk premium had fallen despite the weakened exchange rate.
(Reporting by Marcela Ayres and Alexandra Alper; Editing by Alison Williams and Tom Brown)