"At that time we took some extraordinary steps targeting on a daily scale, targeting the actual aggregates very, very closely because it needed that kind of attention," the Central Bank Governor said.

"Today we have a lower inflation situation which can be managed with more traditional instruments."

"[It is] very unlikely that we would announce quantity targets next year because we think that era has passed."

The Governor said in addition to targeting policy rates through open market operations, the Central Bank will also announce some "supply side" interventions.

"We will look at some interventions which the government as well as the private sector should make in the supply side as well," Cabraal said.

"Because we know we are dealing with the demand side of inflation equation in fairly stringent careful monitored manner, but at the same time we know that inflation is caused by both sides, not only the demand but the supply side as well.
"So we do not want to let go of that side completely saying that it is not our business."

The Central Bank will push the supply side in its role as "economic advisor to the government as also "an influential organ of the country", he said.

The main instrument to improve the supply side and put pressure on domestic producers to improve productivity - especially protected import substitution industries that burden the poor - is to liberalize trade.

"[It will] not necessary be limited to that," Cabraal said. "We will look at a more broader framework. We will encourage new interventions; new policy interventions that ensures that the supply side is also maintained at a fairly reasonable level."