The Central Bank of Brazil did not change the benchmark interest rate as expected.
The Central Bank of Brazil kept its benchmark interest rate for the seventh consecutive time on Wednesday, but took a more dovish tone in its policy statement about its future steps about the possibility of imminent rate hikes.
According to the statement made by the Central Bank of Brazil, the indicator Selic interest rate remained at 13.75 percent. The market expectation was that there would be no change in interest rates.
At its September 2022 meeting, the Bank suspended the interest rate hike, which it carried out in 12 consecutive meetings, with a total of 1175 basis points.
“Copom reaffirmed its commitment to setting monetary policy to achieve inflation targets and decided that a strategy of maintaining the Selic rate for a long period was sufficient to ensure inflation convergence,” the statement said.