CENTRAL BANK AND SENATE PRESIDENTS MEET IN BRASILIA, 1999-01-19 (photo)

Central Bank President Francisco Lopes (R) gets a pat on the jacket from Senate President Antonio Carlos Magalhaes after a brief meeting in Brasilia January 19. The Central Bank moved to bolster confidence in the free-floating currency by raising the key interest rate to 41 percent from 29 percent, a move analysts say should bring more stability while the country gets its fiscal house in order. The real has lost 23 percent of its value over the last week, and Brazil lost a net $325 million through its foreign exchange markets Monday, comparing with a net outflow of $321 from last Friday. The private National Industry Confederation (CNI) said a devaluation of around 25 percent in the real will have an inflationary impact of between 8 and 10 percent. GN/LJM/WS