BRAZIL'S PRESIDENT INSURED INVESTORS ON WEDNESDAY EVENING THAT THERE WOULD BE 'NO RETURN' TO THE PERSISTENT DOUBLE-DIGIT INFLATION OF THE NATION'S PAST, DESPITE A CHANGE OF FINANCE MINISTERS. PRESIDENT INACIO LUIZ INACIO LULA DA SILVA MADE THE REMARKS TO BRAZILIAN AND ITALIAN INVESTORS ONE DAY AFTER THE RESIGNATION OF HIS RESPECTED FINANCE MINISTER CAUSED STEEP DECLINES FOR BRAZILIAN STOCKS AND THE VALUE OF THE COUNTRY'S CURRENCY, THE REAL. THE NEW FINANCE MINISTER, ITALIAN-BORN ECONOMIST GUIDO MANTEGA, REPLACES ANTONIO PALOCCI, WHO WAS WIDELY VIEWED AS THE ARCHITECT OF BRAZIL'S ECONOMIC RECOVERY AND ITS CONSERVATIVE MONETARY POLICY, WHICH PROMPTED LOW INFLATION AND SLOW, SUSTAINABLE GROWTH. DESPITE MANTEGA'S PLEDGE TO MAINTAIN PALOCCI'S COURSE, INVESTORS ARE CONCERNED HE MIGHT LOWER BRAZIL'S HIGH INTEREST RATES TOO QUICKLY AND LOSE CONTROL OVER INFLATION, CURRENTLY AT 5.5 PERCENT.
