2023-06-27 13:25:41
© Reuters. Central Bank building in Brasilia 10/29/2019 REUTERS/Adriano Machado
SÃO PAULO (Reuters) – The predominant assessment among Central Bank members at the last monetary policy meeting was that the continuation of the ongoing disinflationary process could allow reaching the necessary confidence to start a parsimonious process of inflection at the next meeting, according to with the minutes of the Monetary Policy Committee (Copom) published this Tuesday.
“In this debate, there was divergence in the Committee regarding the degree of signaling in relation to the next steps”, pointed out the document, noting that some members were more cautious, emphasizing that the disinflationary dynamics still reflects the retreat of more volatile components and that uncertainty about the output gap raises doubts about the impact of the monetary tightening implemented so far.
The BC decided to leave the Selic unchanged at 13.75% per annum in a meeting last week, and maintained a tough tone when assessing the disinflation process in Brazil, without indicating its intention to cut interest rates in August, as expected by the financial market.
(By Camila Moreira)
#assesses #disinflation #guarantee #confidence #start #inflection #process #shows #minutes #Reuters