RIO DE JANEIRO, Oct. 3 (Xinhua) -- Brazil's Central Bank President Alexandre Tombini Thursday downplayed Moody's decision to lower the outlook for Brazil's government bond.
Tombini stressed the fact that Moody's affirmed the country's Baa2 rating and continued to grant Brazil an investment grade.
Moody lowered Brazil's economic outlook from positive to stable, citing deteriorating key credit metrics, especially its government debt-to-GDP ratio and investment-to-GDP ratio, which were weaker than those of other Baa2 government bonds.
In addition, the agency said there was evidence that the quality of government accounts was deteriorating and its economy was undergoing an extended low-growth period, with 2013 GDP growth expected at around 2 percent.
Tombini said Brazil's third quarter GDP growth would not be as low as previously expected. The second quarter GDP beat expectations and grew by 1.5 percent from the first quarter.
He added that Brazil's inflation rate was "under control" and slowly decreasing toward the 4.5-percent target set for 2013. The accumulated rate from January to August stood at 3.43 percent.
The central banker said Brazil was ready to deal with any consequences of the potential worldwide fallout of fiscal woes in the United States.