Brazil central bank says tightening cycle to be guided by target


SAO PAULO: Brazil’s central bank is reinforcing its pledges of two more full percentage point hikes, amid a more adverse scenario where annual inflation remained stubbornly above target.

Policymakers see annual inflation hovering above the bank’s tolerance range until the third quarter of the year, after which it should slow down even if it remains higher than its 3% goal, governor Gabriel Galipolo (pic) wrote in a letter published last Friday.

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