Central Bank of Brazil Governor Roberto Campos Neto said Monday that there's no "red light" for the monetary authority regarding the convergence to the 3% target, despite the recent worsening of service inflation.



"We still believe that there is a benign convergence of inflation. We have conducted various analyses of the inflation in services and understand that there is nothing that triggers a red light, but we are attentive," he said at an event sponsored by the Commercial Association of Sao Paulo.

"The core of services at the forefront has increased a bit. When we separate labor-intensive and former domestic ones, there are some numbers with a marginal worsening, but still in a scenario we consider benign," he added. (See MNI INTERVIEW: BCB Likely To Keep Cuts Guidance -Schwartsman)