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New long-term rate will strengthen monetary policy - c.bank

BRASILIA, March 31 The new long-term interest rate created by the government to replace the TJLP rate will strengthen monetary policy, allowing for lower interest rates in the future, central bank president Ilan Goldfajn told journalists on Friday.

The government announced earlier in the day that it would overhaul the TJLP, a benchmark interest rate that state development bank BNDES uses for long-term corporate loans, in a bid to reduce costly subsidies.

(Reporting by Alonso Soto; Writing by Silvio Cascione)

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