Brazil FX volatility is too high, should start to fall -central bank chief

BRASILIA, Sept 3 (Reuters) – Brazilian currency market volatility is on the high side, lifted by an increase in short-term flows and day trading, as well as record low interest rates, central bank president Roberto Campos Neto said on Thursday.

Speaking in a live event hosted by businessman Abilio Diniz, Campos Neto said he would like volatility to be lower and is confident it will fall a bit, and also repeated his view that fiscal discipline and respecting the government’s spending cap rule are critical to stabilizing the economy and markets. (Reporting by Gabriel Ponte, Jamie McGeever and Marcela Ayres Editing by Chris Reese)

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