Policymakers are pursuing “much more solid” improvement in inflation expectations, which remain above their 3% goal in place from 2024 to 2026. — Bloomberg
SAO PAULO: Brazil’s central bank poured cold water over bets on a faster pace of interest rate cuts and cited a number of factors that could determine the length of the monetary easing cycle, including long-term inflation expectations which remain above target.
“The monetary policy committee (Copom) concludes that there is low probability of an additional intensification in the pace of adjustment, since this would require substantial positive surprises that would raise even further the confidence in the prospective disinflationary dynamics,” central bankers wrote in the minutes of their Sept 19 and 20 policy meeting.
