Brazil's cenbank says bond buying will target market dysfunction

BRASILIA, April 20 (Reuters) – Brazil’s central bank president Roberto Campos Neto on Monday said any bond-buying the bank conducts will be to fill liquidity gaps and ensure smooth market functioning, rather than flatten the yield curve and reduce longer-term borrowing costs.

Speaking in a live online debate hosted by Estadao, Campos Neto said blanket “quantitative easing” bond purchases are more effective when official interest rates are near zero, which is not where Brazil is, adding that monetary policy in emerging markets is different from developed economies. (Reporting by Jamie McGeever; Editing by Sandra Maler)

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